After a stellar few sessions for currency...>

OPTIONS: After a stellar few sessions for currency hedging volumes, options

activity has moderated slightly Thursday, but remains above broader averages.

USD/CNY remain front and centre, with notional volumes around double what you'd

normally see this time of day. USD/CNY calls remain in demand, with over $2

trading in calls for every $1 in puts - continuing the theme seen since the

break of Cny7.00 in USD/CNY on Monday.

-Implied vols are mixed, generally lower across short-end DMFX, while Asia-Pac

vols look more supported. USD/JPY options volumes are edging above average

despite lower implieds with volatility trades still the focus. One of the more

interesting structures crossing in late Asia/early Europe was a $250mln

95.00/109.51 9-month strangle rolling off in mid-May next year.

-While many vol curves are retracing their recent rallies, that's not the case

for ZAR, with the term structure's short-end rally flattening the curve

materially in recent weeks. 1m vols are now trading north of 15 points, but are

yet to challenge the year's best levels at 18 (just after the January currency

flash crash).