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Subpar currency hedging volumes so far......>

OPTIONS
OPTIONS: Subpar currency hedging volumes so far Monday, although no surprise
given the absences of the Asia-Pac session (China, S. Korea, Hong Kong and
Singapore were all either fully or partially closed). USD/JPY remains in focus
as spot continues its approach on the YTD highs of Y110.00 - hedging volumes are
following suit with over $5.5bln in contracts changing hands so far Monday.
-One of the more interesting pairs so far today has been CAD/JPY. One of the
larger trades of the day has been what appears to be a bearish put calendar
spread, buying Y76.00 put expiring early December and selling Y71.00 puts
expiring in 12 months, both legs equally weighted at CAD330mln apiece. The
structure would break even at around Y75.25.

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