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LSEG Unveils Market Risk Optimisation Service for FX Options Desks

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LSEG has launched Market Risk Optimisation, a new service from Post Trade Solutions, after a successful proof of concept with 13 sell-side FX options desks. Integrated with LSEG’s FXall platform, the service applies proven optimisation technology to help participants trade in and out of market risk more efficiently, unlock liquidity, and lower transaction costs.

The multilateral process analyses participant axes across tenors and risk exposures, proposing an optimised set of trades within each client’s constraints. Analytics are powered by the Open Source Risk Engine (ORE), built on QuantLib, providing transparent and robust valuation and risk measures.

Building on LSEG’s optimisation capabilities first introduced via Quantile in 2017, the new service shifts focus from counterparty metrics to trader-defined market-risk axes. It captures constraints, generates a hedge proposal, and automates trade booking, with end-to-end cycles designed to complete within 30 minutes.

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