CME Group, the world’s leading and most diverse derivatives marketplace, and Japan Exchange Group (JPX), Asia’s leading comprehensive exchange group, today announced the launch of Japanese Yen-denominated Tokyo Stock Price Index (TOPIX) futures contracts to begin trading on CME Globex by Q1 2018, pending all relevant regulatory review periods.
This new financially-settled TOPIX futures contract will be listed with and subject to the rules and regulations of CME. The TOPIX is a free-float adjusted market capitalization-weighted index that is calculated based on all common stocks listed on the First Section of Tokyo Stock Exchange (TSE), the cash market of JPX, and is widely used as a benchmark by institutional investors in Japan.
The launch of this TOPIX futures contract follows the license agreement which CME Group and JPX today concluded and signed. Under the agreement, CME Group will have a worldwide exclusive license outside of Japanto the TOPIX Index for use as a reference rate in listed Japanese Yen-denominated futures and options on futures.
The addition of this TOPIX futures contract to CME Group’s existing suite of Nikkei futures including Yen- and US Dollar-denominated Nikkei 225 Index Futures, and E-mini Nikkei 225 Yen-denominated Futures, makes CME Group the only derivatives marketplace outside of Japan to offer futures contracts based on the two main Japanese indices.
CME Group has also entered into collaboration with JPX on promoting connectivity between their respective co-location facilities located in Aurora, IL and Tokyo. Both companies will engage in marketing activities to provide awareness and availability of the telecommunication providers who offer connectivity services to customers of each Exchange’s co-location facilities.
“Our collaboration with JPX on various initiatives has significantly strengthened our product and service offerings to better address and serve customer needs,” said Terry Duffy, Chairman and Chief Executive Officer, CME Group. “This new TOPIX futures contract in particular, will provide a risk management tool to international investors who are looking to participate in the growth of the Japanese economy and hedging opportunities in relation to the Japanese equity markets.”
“We look forward to a fruitful relationship in growing our markets together with CME Group through a wide range of collaborative activities with CME Group and in particular, raising the awareness of TOPIX globally, and driving the use of TOPIX as a benchmark by global investors especially in North America,” said Akira Kiyota, Group CEO, JPX. “TOPIX futures listed on Osaka Exchange (OSE), the derivatives market of JPX, is already widely used as a hedging tool by Japanese institutional investors. With the launch of TOPIX futures on CME Globex and the promotion of connectivity services between our co-location facilities, we are confident that we will better serve the needs of international investors, helping them realize smoother and more efficient price formations on more active markets.”
CME Group also offers trading in futures and options products on various key benchmark equity indexes including Dow Jones, FTSE, NASDAQ, Russell, and Standard & Poor’s. For more information on CME Group’s Equity Index Futures products, please visit: www.cmegroup.com/equities.
About CME Group
As the world’s leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. Around the world, CME Group brings buyers and sellers together through its CME Globex® electronic trading platform and its exchanges based in Chicago, New York and London. CME Group also operates one of the world’s leading central counterparty clearing providers through CME Clearing and CME Clearing Europe, which offer clearing and settlement services across asset classes for exchange-traded and over-the-counter derivatives. CME Group’s products and services ensure that businesses around the world can effectively manage risk and achieve growth.
CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Globex and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are registered trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other trademarks are the property of their respective owners. Further information about CME Group (NASDAQ: CME) and its products can be found at www.cmegroup.com.
About JPX
JPX, the Asia’s leading comprehensive exchange group, is integrated market infrastructure, with its business domain covering cash and derivatives market operation, self-regulation, and clearing Tokyo Stock Exchange (TSE), the Asia’s largest cash equities exchange, is home to more than 3,500 companies and a wide variety of ETP and REIT products, and Osaka Exchange (OSE), the derivatives arm of the group, provides trading opportunities for Japanese derivatives such as Nikkei 225 futures, TOPIX futures, and JGB futures. In addition to efficient, stable and transparent market mechanisms, self-regulation at Japan Exchange Regulation and CCP functions provided by Japan Securities Clearing Corporation also contribute to trust and confidence in its robust and reliable market infrastructure. JPX will drive market development and continue to diversify its business portfolio as it pursues the next step forward towards becoming “Your Exchange of your Choice”. For further information, please visit our website: https://www.jpx.co.jp/english/.
