Franklin Templeton steps back into FX options
Former biggest user of the instrument among US mutual funds returns with $7.6bn of USD/JPY strategies
In mid-2020, US asset manager Franklin Templeton was by far the largest user of foreign exchange options among US mutual funds, with over $50 billion notional on its books – more than four times higher than its nearest peer. After that high point, the firm slowly ran down its positions to zero by the end of 2022.
But the manager has made a dramatic return to the FX options market in recent quarters. Its first-quarter filings for 2024 show $7.6 billion notional based on future movements of the
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