Low volatility boosts discrete knock-out sales Asia-wide

Target redemption forwards declining in popularity for macro reasons

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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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