RISKY BUSINESS: SoftBank has spent about $4bn on options premiums focused on individual US tech stocks. While the bet has worked for now, a continued pullback in equity markets could erode returns. Picture: Bloomberg/Toru Hanai
RISKY BUSINESS: SoftBank has spent about $4bn on options premiums focused on individual US tech stocks. While the bet has worked for now, a continued pullback in equity markets could erode returns. Picture: Bloomberg/Toru Hanai

Shareholders in SoftBank wiped nearly $9bn off its market value this week after revelations that the Japanese conglomerate was the mystery "whale" that had driven US technology stocks to record highs.

The group’s trading strategy meant it was now sitting on gains of about $4bn after founder Masayoshi Son drove aggressive bets on equity derivatives. In total, it has taken on exposure of about $30bn using call options.

Financial Times

Bangalore boom

Millions of Indians have piled into the country’s stock market, helping sustain a strong rebound since March. The number of individual investor accounts rose 20% from the start of the year to 24-million in July in Asia’s fourth-biggest stock market by capitalisation.

Zerodha, a 10-year-old discount brokerage, handles more transactions than Robinhood, the US platform, according to its founder Nithin Kamath. He said it was processing 5-million to 7-million orders a day, compared with Robinhood’s 4.3-million.

Financial Times

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