The Tokyo Stock Exchange (TSE) published a reminder that it will introduce a new product, mini-10 year JGB Futures, on March 23, 2009. As reported in MARKET INTELLIGENCE X-XV (October 30, 2008), the TSE made its initial announcement about the launch of the product in October 2008.
According to the TSE, normal 10-year JGB futures, which are already provided by the exchange, are traded primarily by institutional investors. With the new product, the TSE aims to meet a greater variety of investors’ needs, for example by allowing investors to trade in smaller denominations. The contract size of mini-10 year JGB Futures is JPY 10 million – one tenth of the contract size for normal JGB Futures. In addition, the minimum fluctuation of mini-10 year JGB Futures is JPY 0.005, compared to JPY 0.01 per JPY 100 for normal JGB Futures.
D.C.