archiveliquidity

Asia hours surge complicates FX options market-making - Risk.net End of drawer navigation content Skip to main content Late tariff announcements in US trigger hedging headaches during less-liquid Asia sessions Since the start of Donald Trump’s second US presidency, many of his tariff-related social media posts have tended to appear late New York time.This piles extra pressure on the Asia trading session when G10 currencies are less liquid and creates risk management challenges for foreign exchange options market-makers.Barry McCarthy, head of FX derivatives trading for North America at Deutsche Bank,...

(Bloomberg) -- Some of Asia’s biggest central banks are getting a painful refresher in economic theory. Monetary authorities in China, India and elsewhere have waged a prolonged campaign against the strong dollar, using a mix of official reserves and opaque derivatives trades to defend their currencies. But their moves have pushed up borrowing costs for local banks just when slowing economies need more liquidity. China’s overnight and seven-day repo rates surged in February, while bond investors took losses from a sharp rise in yields. Banking liquidity in India suffered its...