BNPP makes first big options trade on Nikkei 400 index

French bank executes first major options trade on latest Japan index but hedging will remain an issue until futures are launched in November

share-price

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

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net 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 Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net 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