Hedging remains an issue until futures are launched in November
Cash business likely to stay with Nikkei 225 but derivative trades may shift
Losses manageable now but if the Nikkei goes under 13,000, "there will be panic"
This three-part series looks at the various factors that firms across the ecosystem of global FX markets - from the buy-side, the sell-side, and the supporting community of technology vendors and service providers - should consider in order to, not just survive, but to thrive in this dynamic and ever-changing environment.
More Nikkei articles
Equity derivatives house of the year: Morgan Stanley
European underlyings make up 70% of non-Japan uridashi issuance in 2013
Misunderstanding of the correlation between global levels of volatility leading Asian investors to place too much faith in Vix, according to Edhec Risk Institute
Institutions are creating demand for Topix options, outweighing supply
Institutional demand for Topix options outweighs supply and is creating basis risk for dealers hedging their positions
Traders say no sign of short volatility hedging after Nikkei 225 plunges
Inverted yield curve provides rich pickings for investors
The recent rise in Japan’s equity markets have seen macro hedge funds and asset managers overtake the retail structured product investors as the dominant source of flow on Nikkei and Topix options
Competition among exchanges in Japan is necessary to prevent systems outages such as those in the Osaka Securities Exchange earlier this month
It’s no surprise to find that Société Générale Corporate & Investment Banking (SG CIB) was involved in a large, long-dated equity repo transaction with a US bank last year. What is more surprising...
Asia’s volatility products are not yet liquid enough to draw local investors away from the CBOE Vix
Playing it safe
Making way for the money-spinner
This whitepaper reviews the fundamental changes of Liquidity Risk Management under Basel III. It discusses how institutions can meet the regulatory requirements on liquidity risk management by enhancing their liquidity risk analytics, funds transfer pricing methodologies, liquidity stress testing frameworks, and enterprise risk management platforms.