Flow derivatives
Today´s foreign exchange retail market in flow derivatives originated from the exchange-traded warrant markets in continental Europe. Legislation and investor protection regulations allowed the financial industry to develop leveraged securitized products allowing retail investors to take directional views on exchange rate movements. These derivatives are traded via exchanges or electronic single/multi-bank trading platforms (e.g. XOL, CATS-OS, etc.). Products are priced continuously (real time) and can be traded automatically (unless a certain threshhold is breached) via e-platforms.