High‑frequency firms are moving deeper into the $300 billion‑a‑day OTC currency options market. London‑based IMC Trading began trialling US‑hour market making in June, while US‑based Susquehanna International Group is hiring in Europe to expand its FX derivatives desk, to capture emerging demand.

Options remain harder for non‑bank players because of complex margin rules and the expiration process. Non‑banks currently capture roughly 5 % of total FX revenues, according to Crisil Coalition Greenwich, limiting their profit upside, in volatile market conditions and regulatory scrutiny. Banks like Citigroup and JPMorgan retain an edge thanks to longstanding credit relationships and steady corporate hedging demand, especially in exotic or longer‑dated contracts.

Optiver has already shifted to 24‑hour trading and is probing more sophisticated products, from less‑traded currencies to longer‑dated options, for institutional investors seeking hedges. Industry observers say the surge will tighten spreads and improve execution for corporate clients, while forcing banks to defend pricing advantages. The structural shift signals a broader diversification of high‑frequency firms beyond spot FX into higher‑margin derivatives.