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Currency hedging volumes slightly ahead.....>

OPTIONS
OPTIONS: Currency hedging volumes slightly ahead of average for a regular
Monday, with greater-than-average volumes in USD/CNY, GBP/USD and EUR/GBP
helping counter slightly quieter markets in USD/JPY. $6.3bln in USD/CNY notional
has changed hands so far Monday, well ahead of the $4bln you'd expect to see at
this point of a normal session. Some of the larger USD/CNY options trades are
what appears to be a 6.65/6.85 strangle, expiring on Feb15 (towards the end of
the Chinese New Year holiday) for a total notional of over $500mln.
-Other large trades crossing the DTCC so far today include what appears to be a
bearish 1y put spread: buying 1.1250 EUR/USD put strikes and selling 1.0500 put
strikes for a total notional of just over $400mln. The structure would break
even at around $1.1150.

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