Key facts
- Client-driven volumes in emerging market currencies have grown by over 18% this year.
- Emerging market currency options volumes have grown at nearly double the rate of G10 currency pairs.
- Dampened volatility in developed markets has held back activity in G10 currency options.
Foreign exchange options dealers are reporting a jump in volumes from clients betting and hedging on emerging markets currencies this year. This surge in activity contrasts with developed markets, where dampened volatility has led to reduced trading. According to research firm BCG Expand, client-driven volumes in EM currencies have grown by over 18%, more than double the options volumes seen in G10 major currency pairs.