As is the case in FX spot markets,..........>

OPTIONS: As is the case in FX spot markets, options turnover sits lower than

average at the NY crossover, with muted CNY and EUR markets dragging down

overall volumes. Despite this, short-end implied vols are generally having a

better session across DMFX, with USD/CAD and GBP/USD posting the largest gains

in 1m space. EMFX vols are slightly more bid, with USD/MXN, USD/TRY and USD/KRW

all firmer to a decent degree.

-EUR/CHF options vols surged just ahead of the NY open, with substantial

downside position crossing: a two-month E220mln/E200mln 1.0775/1.1000 put spread

rolling off on September 20th. The trade would break even on a move below approx

1.0950.

-The weakness in GBP/USD spot has triggered further demand for GBP downside

hedges, with markets eyeing put strikes at 1.24, although a series of trades

have crossed that appear to be picking the bottom, with 1.25 and 1.2550 call

strikes also proving popular. EUR/USD and EUR/GBP 1-week vols trade with a

decent premium now they capture Thursday's ECB rate decision, hitting the

highest since early July and early June respectively.