After a few frantic sessions at the end.....>

OPTIONS: After a few frantic sessions at the end of last week and the beginning

of this week, currency hedging markets are a little quieter today, with more

active INR, CAD, BRL and AUD markets markets countered by lower activity in JPY,

CNY, EUR and GBP.  Alongside the drop in equities and risk sentiment more

broadly, implied vols have been bid, correcting yesterday's dip. Largest

front-end vol gainers today have been EUR, SEK, DKK and JPY.

- The uptick in INR hedging has been led by large demand for USD/INR puts, with

$3 in puts trading for every $1 in calls. 73.50 and 72.75 put strikes reflect

the bias for downside hedging today, with put spreads the preferred tool.

- Following the Bank of Canada rate cut yesterday, CAD downside bets via options

have surged, with call strikes as high as 1.3750 in high demand. USD/CAD risk

reversals contract are suitably bid in response, particularly the contracts

capturing the next BoC decision on April 15th. Similarly, USD/BRL calls are a

prevalent trade as spot continues to strike alltime highs. One of the more

interesting trades eyes a 4.6150 1-month call, paying a $3.2mln premium for the

position.