BNP Paribas sees surge in demand for forex volatility structures
Investors are increasingly seeking exposure to foreign exchange volatility and correlation, according to BNP Paribas
Foreign exchange investors are diversifying into the pure currency volatility space and approaching volatility as an underlying in its own right, according to BNP Paribas.
"The interest in pure volatility and correlation trades is going to be very correlated with the liquidity and the transparency of the underlying," says Vincent Berard, European head of interest rates and FX structuring at BNP Paribas in London.
The bank has seen an increase in investors taking a view on the direction (and
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