Plunging Nikkei brings $40m vega losses to Japan dealers

Losses manageable now but if the Nikkei goes under 13,000, "there will be panic"


Japan-based equity derivative dealers are facing volatility-linked losses of about $40 million after emerging market panic spread to Asia's second largest economy, partially reversing last year's bull run and driving down the benchmark Nikkei 225 index by 13% in little over a month.

After a profitable 2013 for equity derivatives houses in Japan that saw the Nikkei 225 rise more than 70%, and a steady flow of equity-linked uridashi bond issuance, dealers are experiencing a more difficult start to

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

What gold's rise means for rates, equities

It has been several years since we have seen volatility in gold. An increase in gold volatility can typically be associated with a change in sentiment and investor behavior. The precious metal has surged this year on increased demand for safe haven…

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 individual account here