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FX options activity is slightly ahead of....>

OPTIONS
OPTIONS: FX options activity is slightly ahead of average Wednesday, largely led
by more exotic markets, with USD/INR and USD/HKD options trades well ahead of
usual levels.
-Call strikes at 8.00 in USD/HKD earlier this week raised interest (seen as a
bet on USD/HKD potentially breaking the peg of 7.85) and that trend continued
well into Wednesday, with well over $2bln in 7.85 calls trading in
Asia-Pac/early European hours. $300mln in calls also traded with strikes north
of 7.85, following the theme after the HKMA were forced to intervene and defend
the peg to the tune of HK$4bln overnight.
-Elsewhere, AUD/USD volumes are slightly ahead of average, with the highlight
appearing to be a $0.6960/0.7145 short strangle, rolling off in just one week's
time for a total notional of A$340mln, likely betting against near-term
volatility and realising premiums of just over $110,000 upfront.

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