Low volatility boosts discrete knock-out sales Asia-wide

Target redemption forwards declining in popularity for macro reasons

Target redemption forwards in decline

While discrete knock-out forwards have been in demand in Taiwan as a result of a regulator crackdown on target redemption forwards (Tarfs), foreign exchange dealers are also reporting a shift by Asian clients outside of Taiwan to discrete knock-out forwards due to continuing low volatility.

Tarf products have been a popular way for investors in Hong Kong, Singapore and Taiwan to gain enhanced yield by expressing a view on the movement of currency pairs. Currencies that have been popular due to

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Stemming the tide of rising FX settlement risk

As the trading of emerging markets currencies gathers pace and broader uncertainty sweeps across financial markets, CLS is exploring alternative services designed to mitigate settlement risk for the FX market

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