The first of a series report on futures trading in Asian markets is presented. By losing about $1.4 billion, Nick Leeson single-handedly brought about the collapse of the Barings Bank. The trader/general manager/back-office manager speculated primarily on Nikkei 225 futures and Japanese government bonds futures, as well as Nikkei options. All this had dramatic implications for the bank, which had few positions in the markets that Leeson was trading to spread out institutional-wide risk. Unfortunately for the rogue trader, he continuously lost money. One of the key features of the Japanese economy has been artificially low interest rates. Due to this, the carry trade, borrowing of money in Japan and putting the same in US bonds, worked well for a long time. However, if interest rates appear artificially low for some time, then inflation can occur, which if left uncontrolled can lead to stagflation.