Asia hours surge complicates FX options market-making
Late tariff announcements in US trigger hedging headaches during less-liquid Asia sessions
Since the start of Donald Trump’s second US presidency, many of his tariff-related social media posts have tended to appear late New York time.
This piles extra pressure on the Asia trading session when G10 currencies are less liquid and creates risk management challenges for foreign exchange options market-makers.
Barry McCarthy, head of FX derivatives trading for North America at Deutsche Bank, says this is particularly the case if news lands when markets are closed over the weekend, making Asia
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