Nikkei Back-End Vols Remain Range-Bound Despite Structured Product Knockouts

​Nikkei 225 (NKY) back-end volatility is range trading, despite a wave of reissuance in structured products last week as previous structures knocked out on the back of a surge in the index earlier this month. Traders and strategists note that in the same situation in 2013 and some parts of 2014, back-end vol in the NKY would have popped higher as participants moved to immediately hedge their vega.