Lack of IT raises cost of processing options

The survey, which assessed nine global banks in May, found that although the cost of processing spot transactions now averages $8.50 compared with $10 in 2002, the cost of processing and monitoring currency options is stable at $58. "A large amount of this is because much processing is automated for spot/forward trades, while processing of options remains manual in some banks," said Jeremy Smith, director at Z/Yen.

This is due partly to back-office systems not having kept up with developments