Implied vols are generally falling among....>

OPTIONS: Implied vols are generally falling among the majors with few

exceptions. GBP/USD 1m vols have dropped just over 0.5 vol points, but remain

elevated having closed at the highest level since early December yesterday. This

follows the increased uncertainty stemming from votes in UK parliament which

secures parliamentary oversight of the passage of Brexit itself.

-EM FX, however, is a different story with vols ticking higher across the curve

for BRL, MXN, RUB and, in particular, TRY. Overnight vols in USD/TRY saw sharp,

erratic price action ahead of the close Monday (resulting in an apparently

un-erroneous print of 145.9 vol points, easily an all time high) and they remain

acutely elevated today. Market sources report much of the problem is stemming

from funding issues and the moves come despite Reuters reporting that Turkish

banks in London had started keeping USD/TRY swaps markets trades well below the

25% regulatory limit, showing the market remains inconsistent and patchy at

best.

-USD/RUB vols are ticking higher, but remain heavily supressed at present after

hitting the lowest levels since early 2018 on Friday last week.