Singapore based start-up SynOption Pte. Ltd. launched its platform for electronic trading of FX Options this week. An institutional platform, it allows investors to execute FX Options trades by requesting quotes from multiple banks on a centralized venue, thus enabling Best Execution for clients.
SynOption is the first firm approved by Monetary Authority of Singapore (MAS) to establish and operate an organized market for a period of 9 months under the Sandbox express framework. The firm has also been awarded a grant by MAS Financial Sector Development fund as a designated special project.
SynOption supports MAS’s vision to make Singapore the FX trading hub in Asia by focusing on the derivative segment of the market. By being part of the FX hub, SynOption intends to provide high speed connectivity to clients with lower trade rejection rates as more liquidity providers set up operations in Singapore.
SynOption’s founder, Anchal Jain, is a veteran in the FX Options markets. Mr. Jain’s experience includes stints as a banker, where he was Managing Director at JPMorgan Chase Bank managing the bank’s FX Options business in Asia; and as a Hedge Fund Portfolio Manager with Balyasny Asset Management.
"SynOption attempts to build a fair platform for trade execution for all participants in the niche FX Options market. We provide an efficient workflow to clients, by getting involved in their entire investment process from idea to implementation, while protecting liquidity for banks in an illiquid space", says Mr. Jain.
SynOption has started onboarding Institutional clients based in Singapore and has gained good traction. The platform has signed up top tiered banks up as liquidity providers and is rapidly looking to expand its participant base in the next few months.
Speaking about the vision for the platform, Mr. Jain says, "In a world where electronic trading now dominates most linear products, the FX Options market has lagged behind primarily due to the complexity of the product. Leveraging on our experience, we are trying to create an intuitive product that will make the electronification journey easier. We intend to increase the scope of product and geographical reach as we gain more of a foothold in Singapore, and for that reason we continue to look for talented individuals to join us in our journey".