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Total currency hedging volumes running......>

OPTIONS
OPTIONS: Total currency hedging volumes running just below average so far
Wednesday, with lower trading activity in GBP/USD, EUR/GBP and AUD/NZD
countering better volumes in EUR/USD, USD/JPY and USD/CNY.
-Volatility trades remain particularly popular in EUR/USD, with the two largest
trades so far today appearing to be EUR/USD strangles, with a E436mln 6-month
$1.1185/1.1810 strangle shortly followed by a E416mln 2-year $1.1261/1.2858
strangle around 30 minutes later.
-USD/CNY options trading has been heavily skewed toward USD/CNY puts following
better-than-expected GDP data overnight. $3 in put option notional has traded
for ever $2 in calls, with Cny6.40 and Cny6.20 put strikes particularly popular.
-Short-end vols are little changed across much of DMFX with the exception of
AUD/USD, with 1m vols edging higher by close to 0.5 vol points following the
China data and as the contract begins to capture General Election risk with
results due on May 18th. USD/TRY short-end vols are among the biggest fallers,
dropping over 1 vol point but remaining well above the YTD average of 19.0
points.

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