The Nikkei 225 Reconstitution

Posted: 18 Sep 2008

See all articles by Robin M. Greenwood

Robin M. Greenwood

Harvard Business School - Finance Unit; National Bureau of Economic Research (NBER)

Date Written: March 15, 2007

Abstract

SUBJECT AREAS: Arbitrage, Risk, Risk management, Securities, Stocks.

Taka Haneda, a proprietary trader at the Tokyo office of Goldman Sachs, has just learned that the Nikkei 225 will undergo a significant redefinition over the coming week. He faces several billion dollars of customer orders, as well as the opportunity to commit the firm's capital to provide liquidity for the event. He must decide what positions to establish, and at what price he is willing to get out.

Suggested Citation

Greenwood, Robin M., The Nikkei 225 Reconstitution (March 15, 2007). HBS Case No.: 207-109, Available at SSRN: https://ssrn.com/abstract=1270393

Robin M. Greenwood (Contact Author)

Harvard Business School - Finance Unit ( email )

Boston, MA 02163
United States
617-495-6979 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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