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Hedging activity is particularly high.......>

OPTIONS
OPTIONS: Hedging activity is particularly high Tuesday, with volumes well ahead
of the average usually seen at this point of the trading day. Options volumes
are led largely by USD/JPY (near $8bln notional traded so far) and USD/CNY (over
$5bln). Elsewhere, EUR/USD, USD/KRW and AUD/USD hedging are well ahead of
average.
-Interest in USD/JPY puts has outstripped calls for a second session, with over
$4.6bln notional waged in put strikes so far today. put strikes expiring at
Y108.55, Y108, Y107 and Y103.25 carry the most interest Tuesday, with large put
spreads also prevalent in recent trade, expiring in 2 weeks' time.
-Conversely in USD/CNY, one of the larger options trades today tracked via the
DTCC appears to be a bearish call calendar spread, buying 1y 7.55 strikes and
selling 9m 7.25 strikes for total notional of over $500mln. 

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