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Decent currency hedging volumes so far......>

OPTIONS
OPTIONS: Decent currency hedging volumes so far (particularly for a Friday
morning) with the further slip lower in CNY helping drive activity across
USD/CNY as well as USD/JPY, USD/KRW and others. Higher volumes are helping drive
implied vols higher, particularly across the 1m contracts, with Asia-Pac FX vols
benefiting most materially. USD/TWD 1m vols now sit at the highest levels since
mid-January. As has been the case for much of the week, USD/CNY trades are
leading the way, with well over the double the daily average in contract
notional changing hands so far. The call bias remains evident, with over $3 in
calls bought for every $2 in puts so far Friday. Some of the larger trades
crossing include a $1bln in 1m Cny6.8750/7.0500 strangles trading in two parts.
-Fresh multi-year highs in USD/KRW helped triggered renewed demand for KRW
downside, with USD/KRW call strikes at 1,180, 1,215 and 1,195 particularly
popular during Asia-Pacific hours.
-Similarly, markets continue to hedge against further GBP weakness (as has been
the case throughout the week) with $1.2390, $1.2545 and $1.2700 put strikes
better bought.

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