Both options and futures volumes slightly...>

OPTIONS: Both options and futures volumes slightly sagging, with hedging

activity sitting slightly below recent averages for this time of day. Implied

vols are more mixed, with USD/JPY vols retreating across 1m - 1y sector of the

curve while GBP vols continue to inch higher on Brexit risks.

-GBP/USD 1m vols hit fresh multi-month highs today at 11.2 points, but are yet

to challenge the levels seen ahead of the original Brexit deadline at the end of

March earlier this year (vols peaked at around 14 points). Interestingly, for a

second session upside hedging in GBP/USD has countered downside trade, with call

notional outnumbering puts by around 3:2. $1.31, $1.2260 and $1.2245 GBP/USD

call strikes have drawn the most attention.

-Today's breakout in CNY has fed well in options markets also, with USD/CNY

activity higher than average. Short-term volatility hedges remain popular, with

one of the larger trades crossing (late Asia, early European hours) consistent

with a $230mln 7.0845/7.2680 strangle rolling off in just one week's time.