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Decent start for FX options turnover........>

OPTIONS
OPTIONS: Decent start for FX options turnover Monday, with most major pairs
seeing above average activity for this time of day. EUR/USD, USD/CNY hedging
markets have been busier, more than making up for the quieter USD/JPY and
AUD/USD trade.
- Given the uptick in risk appetite from the open today and the correction
higher in Hong Kong equities, implied vols have been marked higher for most
short-end across DMFX, although overall vols remain inside recent ranges.
- A surge in demand for USD/KRW downside protection helped prop up Asia-Pac
options markets, with sizeable interest in 1,180, 1,200 put strikes crossing in
late Asia / early European hours.
- A series of volatility hedges in EUR/CHF that traded alongside the European
open have tipped options activity to more than double the average for this time
of day. 1.0450, 1.0550 puts traded alongside 1.0750, 1.0850 calls, with all
trades eyeing a December 21st expiry.

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