FX traders dump short-dated options on Brexit mire

Attention turns to long-dated positions after failed no-confidence vote

Brexit drop
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Foreign exchange options traders have jettisoned short-dated sterling-US dollar positions following the failed no-confidence vote against UK prime minister Theresa May yesterday, as attention shifts to longer-dated expiries in the New Year. While traders say liquidity concerns have eased, the constantly changing situation has scared some hedge funds off the trade altogether.

“We're really in uncharted territory here on so many levels. I think [moving forward] it’s going to be very choppy, but

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