Goldman Sachs has added exotic foreign exchange options to its online trading platform for customers. Zar Amrolia, managing director and global head of foreign exchange sales and e-commerce in London, said Goldman Sachs is the first bank to offer a purely online system which broadcasts prices. He added that offering American-style digital options, which are the building blocks for 90% of structured products, allows clients to execute almost any structure online. The bank has built the system for five currency pairs: euro/dollar, euro/yen, dollar/yen, cable and Australian dollar/U.S. dollar. Within several months, it will expand that to 20 currency pairs.
Amrolia said it is no longer particularly profitable for traders to execute customers' options positions because the products are so commoditized. Goldman sees its role as an advisor and a risk taker and the web site will free up marketers' time to do more profitable business.
