Extreme volatility in the Japanese government bond market could trigger a sell-off on a par with a market rout in the third quarter of 2003. That was when local banks and foreign investors were forced to dump their JGB holdings after heightened volatility caused the assets to exceed internal value-at-risk limits.
Investors betting on a continuation of Japan’s six-month runaway bull market suffered their biggest scare yet on Thursday as the Nikkei 225 lost more than 7% – its largest one-day loss in more than two years.
Large structural changes afoot in Europe’s exchange landscape are set to drive one of the biggest shake-ups as new and incumbent players vie to win market share across some of the most liquid futures contracts. At the heart of the battle is the 4.5m of open interest in three-month Euribor futures contracts – a market currently controlled by NYSE Liffe.
- QE tapering drives rates sell-off
- DERIVATIVES: QE tapering plans drive rates sell-off
- DERIVATIVES: Liffe faces battle for Euribor futures
- Nikkei highs drive relative value trades
- Quality gains traction
- Repo slumps on long options uptick
- Risk factor strategies gain traction