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Currency hedging volumes on the front.......>

OPTIONS
OPTIONS: Currency hedging volumes on the front foot once again, with USD/JPY the
most active pair so far Thursday: just shy of $9.5bln notional has changed hands
so far today, well ahead of the $8bln you'd expect to see at this point of the
session. USD/JPY total put notional outstrips that of calls by around 15%,
inline with the drop in the spot rate so far today. Y108 put strikes have been
particularly popular, with some trades also eyeing put strikes as low as Y98.50.
-One of the more interesting USD/JPY trades crossing the DTCC appears to be a
bearish risk reversal structure, selling Y110 calls and buying Y105 puts
expiring in just over two months for a total notional of over $500mln.

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