I was trying to buy one JGB sep 14 future today in IB. I got a message that "This account cannot trade this security due to regulatory restrictions". I have a Reg T account of about $50K now. Is it because of that? If I update to portfolio margin with $100K does that solve that problem or is it related to something else? Thanks
Why in the world would you trade JGB futures? The Bank of Japan has rigged the long term yield curve as they have bought almost every bond on the market that exists. This is the only way how they can prevent that "hostile hedge funds" and other market participants can punish them for rigging not only the bond market but the currency market, too. Otherwise, Japanese yields would be over 10% long time ago. Accordingly - as BOJ has bond markets under total control - what sort of volatility do you expect in JGB futures? It´s a boring market.
mainly because it is boring ;-) no volatility and good for about 10-15 bps a week. dwindling supplies seem to keep edging it up bit by bit.
Quite. Not really claiming to have found a low risk trade or something. In any case, anyone know the answer to the original question?
I assume you are outside US. Why not call IB directly? In US, I have no reg. restrictions to trade JGBs.
polemic or not, get your fuxxing facts straight, even a kid can google and figure out that JGB holdings by BOJ is nowhere remotely where you suggest. But here for your convenience: https://www.boj.or.jp/en/statistics/boj/other/mei/index.htm/ You now only need to figure out outstanding issuance of each series, but let me help you in stating the fact that BOJ currently holds around 20% of outstanding JGBs. It sometimes helps not to talk out of one's ass....