Tokyo Electric Power (TEPCO) 9501

Discussion in 'Stocks' started by m22au, Mar 14, 2011.

  1. m22au

    m22au

    I am looking at shorting specific Japanese companies, such as Tepco.

    However it may be difficult to short these stocks directly, so I am investigating the possibility of creating a synthetic short, by shorting an index (Nikkei or Topix) and buying a basket that represents most or all of the other stocks.

    My initial investigations have found this link for Topix data:
    http://www.tse.or.jp/english/market/topix/data/component.html

    One consideration is to work out how the index provider(s) calculate an index when a stock like Tepco is ask-only.
    http://www.bloomberg.com/apps/news?pid=conews&tkr=9501:JP

    Do they use the ask-only price? Or the "last traded" price?

    And do the futures based on the index trade at a discount to reflect the expected price of the "ask-only" stocks?
     
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