Nikkei 225

billion. The loss was caused by a large exposure to the Japanese stock market, which was achieved through the futures market. Leeson, the chief trader for Barings Futures in Singapore, had been accumulating positions in stock index futures on the Nikkei 225, a portfolio of Japanese stocks. As the market fell more than 15 percent in the first two months of 1995, Barings Futures suffered huge losses, which were made even higher due to

debt in the future ever harder (OECD, 2015). The Nikkei 225 Stock Average is Japan’s most important stock index. The Nikkei 225 index declined as a result of the Global Financial crisis and hit a low in February 2009. It was only after Abe took office as prime minister and announced ‘Abenomics’ that send the Nikkei index up with 57 percent during 2013 (Pattekar, 2015). In 2014 the Nikkei increased with another 5.7 percent and in June 2015 the Nikkei reached a 15-year high. However, due to economic

catastrophe. Financial Times reports the performance of global indices - S&P for Americas, FTST Eurofirst 300 for Europe and Nikkei 225 for Asia-Pacific region, plus, the Nikkei 225 is comprised of 225 stocks that are selected from the Japanese common stocks in the first section ranked by trading volume of the Tokyo Stock Exchange (Nikkei indexes, 2014). Therefore, the Nikkei 255 is considered to be a good proxy of the Japanese market capitalization ( Ugbede, Lizam, Kaseri & Idachaba, 2013). Market

CASE STUDY Barings bank is the oldest bank in United Kingdom and the barings family have led the bank since 1763. Barings Bank was founded by Sir Francis Baring in 1762 and became a commercial bank (merchant banks) oldest in England. Because of his age, it's no wonder that banks have got good reputations. But in 1995, this bank collapsed due to losses which have ammounts USD 1.4 billion in business, that is far above its capital which approximately USD900 billion. Inability to pay the obligation

achieve the benefits from differences in price as well. Second, the investor can achieve leverage effect. Third, investing put options can protect book profit. c) Cumulative returns: S&P/TSX is: 8.10% Nikkei 225 is: -8.33% FTSE 100 is: 3.08% DAX is: -1.44% Plot: S&P/TSX: Nikkei 225: FTSE 100: DAX: How to calculate: Using excel. First finding out the price data from the beginning of 2016 to the end of April on the internet (yahoo finance), and then using everyday’s price to

➢ Overview of Barings Bank Barings Bank was founded in 1763 and known as the oldest merchant bank in London until its collapse in 1995. The bank not only accepted deposits and provided financial services to its clients but also traded on its own account. Over the years it became quite successful and in 1980 it set up brokerage operations in Japan. Soon after, it expanded its operations to include a handful of other Asian countries and in 1992 it activated its seat on the SIMEX (Singapore International

branch of the Barings bank, the strategy of the bank was to reduce the risk exposure by using a combination of one short straddle (combination of put / call) and for one long future. Since Nick Leeson used to be a specialist on Future contracts on Nikkei 225 and Japanese 10 years bond and was sure this market would arise. So he decided to sell disproportionate numbers of short straddles for each long futures position he took to pay the required initial margin deposits and new trades and also to meet

branch of the Barings bank, the strategy of the bank was to reduce the risk exposure by using a combination of one short straddle (combination of put / call) and for one long future. Since Nick Leeson used to be a specialist on Future contracts on Nikkei 225 and Japanese 10 years bond and was sure this market would arise. So he decided to sell disproportionate numbers of short straddles for each long futures position he took to pay the required initial margin deposits and new trades and also to meet

The topic of this dissertation is to discuss the monetary policy adopted in bubble economy period of Japanese. As Japanese economics is a specific example around the world. The Japanese government adopted many effective ways to revitalize the economy with the result that its economy rose abruptly after the World war II. However, because Japan entered a liquidity trap around 1990s, and experienced a “Lost Decade” (Hiyashi and Prescott, 2002), the government experienced many economic problems such

due to the fact that it eliminated necessary checks and balances that would prevent such fraud from occurring. He had authority to deal in futures and options order for clients or other firms within Barings and arbitraging price differences between Nikkei futures traded on the SIMEX and Osaka exchange, it was a low risk strategy meant to