​Long Sterling/Short FTSE Vol In Focus As UKX Increasingly Becomes ‘Bid Up’

Fund managers who trade cross-asset are increasingly considering going long cable and short FTSE 100 (UKX) vol as the index increasingly becomes bid up as investors moved early in owning vol on the underlying as the U.K. General Election grows nearer. The UKX has also been a focus for investors for funding upside in the DAX, while trading UKX vs. DAX variance swaps has also been highlighted by sellside participants as an attractive trade.