On page 13 of its fourth-quarter earnings report, published on February 5, UBS tries to explain a Sfr177 million ($188 million) slump in equity trading revenues. Part of the problem, it says, was the Japanese structured products book, which lost money as volatility increased in December's Nikkei 225 index rally. What it does not say is that the rest of the industry suffered too - and not just at the end of the year.
Exotics desks were initially caught out in the second quarter, when the Nikkei f
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