Global banks cause pricing bother in Asia
Speaking at the FX Week Asia congress in Singapore last Tuesday, Hann said that, due to a lack of agreement on the depo rate, global dealers have shifted to quoting options using forwards premiums. "For the regional banks, such as the Japanese banks, it can get quite confusing to quote as [global] banks are quoting using forwards premiums versus depo rates," said Hann.
More generally, he said foreign exchange options volumes have failed to return to the pre-crisis levels seen in the spot FX
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