Fintech DriveWealth Introduces Options Trading Globally

For the first time, DriveWealth says it is expanding the range of tradeable asset classes on its platform: their partners can now “build options trading experiences all within their investing APIs.”

Equity options have “grown in popularity with retail investors over the past decade, largely because of their volume and access to new trading strategies like hedging existing positions.”

With this first launch, customers can buy call and put contracts “for thousands of stocks and ETFs.”

DriveWealth is launching options by “expanding what you can access with our existing APIs: from onboarding, funding, and orders, to reporting—all of these areas now have first-class support for transacting options contracts, in addition to equities.”

This means you can launch a stock investing product today, “then add options support later (or vice versa) with minimal change to infrastructure and implementation.”

Just like with equities, DriveWealth handles “a breadth of infrastructure and regulatory requirements so you can focus on customer experience.”

Components like market data, order execution, clearing and settlement, commissions, exercise and assignment, tax reporting—can “all be handled by the DriveWealth platform.”

  • Chain Details and Filtering. Find chain, quote, and fundamental information without needing an additional vendor and integration.
  • Expiry Day Automation. We can manage expiry day liquidations and automatic exercises to help ensure customers don’t end up in a challenging situation.
  • Simplified Risk Management. A built-in Options Approval Matrix can govern accounts that are allowed to transact, while Pre-Trade Checks manage risk at time of order placement.
  • Trading via REST and FIX APIs. This dual support offers a simple integration path with redundancy for booking orders.
  • Regulatory Reporting. DriveWealth manages a range of US regulatory reporting for our partners, so you can focus on user adoption and growth.

Options trading on DriveWealth is now available in sandbox for select partners in all regions.

As noted in the update, Options tend to “carry significant risk and are not suitable for all investors.”

Options trading may expose investors “to potentially rapid and substantial losses.”

Individuals should “not enter into an options transaction until they have read and understand the Characteristics and Risks of Standardized Options, also known as the options disclosure document (ODD), issued by the Options Clearing Corporation.”

The ODD outlines the purposes and risks of options transactions.

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