Tokyo Exchange. Later, they would look to open a Singapore office for trading on the SIMEX. Leeson requested to set-up the accounting and settlement functions there and direct trading floor operations (different from trading). The London office granted his request and he went to Singapore in April, 1992. Initially, he could only execute trades on behalf of clients and the Tokyo office for "arbitrage" (Lesson 10) purposes. After a good deal of success in this area, he was allowed to pursue an official trading license on the SIMEX. He was then given some "discretion" in his executions meaning; he could place orders on his own (speculative, or "proprietary" trading).
Nick Leeson swap hedging
Hello! I have a school assignment on the Barings case, but I don't know much about anything related to financial market.
The question I can't really figure out is this one: Would it be interesting for Leeson to hedge himself with swaps?
I don't know if I relate swaps to account 88888 or to the Nikkei index falling... And I don't what kind of swaps I should mention either. If anyone could help...
Now, interesting in what aspect? I suppose the intention would be to recover the losses faster or maybe not to lose the amount he did in the first place.