Nikkei Options?

Discussion in 'Index Futures' started by heech, Sep 20, 2010.

  1. heech



    NKD looks like an interesting futures contract. It looks like options on NKD really don't trade though (at least not on Globex)... anyone know if options for the Nikkei 225 are available elsewhere?
  2. heech


    Just to answer my own question... the Yen-denominated options are listed on Osake Stock Exchange. IB supports it using symbol 'N225'. I'll be looking at quotes when the exchange over there opens up later today.
  3. Good luck, m8... I think you might be in for a disappointment.
  4. heech


    I'm a little confused...

    I was working under the impression that foreign equity options wouldn't be available for US traders. And that this was why IB didn't list the Euro Stoxx 50 options, while it did list the futures.

    But why are Nikkei 225 options available? Anyone out there have a clue?
  5. I'm guessing its a cash settled derivative and not an assignable equity.
  6. heech


    My understanding was that didn't make any difference. The Euro Stoxx 50 option on Eurex is also cash-settled.

    I see a previous discussion here:
  7. heech


    I'm a little confused, and am wondering if IB isn't skirting the regulatory rules.

    SEC does offer no-action relief to a number of overseas equity options, as listed here:

    Nikkei options, as well as a number of options on other exchanges, are listed here. However, the no action letter itself is very clear that options can only be traded by "eligible institutions" (as defined by the Securities Act)... meaning $100 million+ in assets under management.

    How is IB getting away with this?

    EDIT: Just to be clear... not criticizing IB. I'm excited, just wondering if I'm really safe from a regulatory point of view trading it.