UBS is developing an automated trading system for equity derivatives. Stephen Fulford, joint head of risk management products in London, said the platform will eventually allow clients to trade on-line, receive confirmation and entry into the risk-management system. The firm can currently post prices for stock options on-line, but cannot trade and carry out the operational procedures.
"A great advantage of this platform is that it allows us to see where options are being priced without having to ask the market," Fulford said. This allows the firm to execute client trades without tipping off the market beforehand.
The decision to develop the equity derivative platform follows the success of its foreign exchange trading system, noted Fulford.
