BNPP makes first big options trade on Nikkei 400 index

Hedging remains an issue until futures are launched in November


French bank BNP Paribas says it is the first bank to execute a several hundred million dollar options trade on the three-month-old JPX-Nikkei 400 index but the absence of a futures market means it has had to proxy hedge any market movements.

The JPX Nikkei 400 index, launched in January, has given investors in Japan an alternative to the existing Topix and Nikkei 225 indexes which have been criticised for giving skewed weighting to certain names.

The new index uses a free-float methodology weigh

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: