As has been the case all week, currency.....>

OPTIONS: As has been the case all week, currency hedging volumes sit

lower-than-average for this time of day. EUR/USD options activity, which had

lagged over the past few days, has begun to pick up - likely triggered by the

multi-month lows in the spot rate today. USD/SGD volumes have also surged,

although USD/CNY, AUD/USD and GBP/USD markets are much quieter.

-Implied vol markets are more mixed. EUR/USD vols are unsurprisingly higher,

with the short-end of the term structure edging higher. So far, EUR/USD options

trade has been slightly tilted toward puts, with 1.10, 1.0925 and 1.09 strikes

favoured (although put strikes as low as 1.0715 have also garnered attention).

-Some of the larger trades crossing in the Asia-Pac session were volatility

hedges, with early Asia trade seeing a E225mln 1.1090 straddle crossing due to

roll-off on October 14th. Nonetheless, the downside protection bias has been

typified by some of the put spreads crossing today: 1.0925/1.1025, 1.10/1.11 put

strikes have been favoured.

-SGD's post-industrial production slump has also triggered a wave of USD/SGD

call option buying, with over $3 in calls trading for every $1 in puts today.