TOMEX Announces the Launch of Long-Term Bond Futures for Clients
Released on: December 19, 2011, 8:16 am
Tokyo finacial news
Tokyo Mercantile Exchange, one of the industry’s biggest and
most diverse futures marketplace recently announced the launch of
long-term futures beginning this year. These contracts will be part of
and subject to the regulations and laws of the industry authorities. It
will also be approved pending the board’s ruling.
"The long-term futures has now become part of TOMEX’s product listing as part of
our response to overwhelming customer demands and requests for a contract that is
similar to this one that we have launched," said Tokubey Ito, TOMEX Director and
Vice President of Consumer Affairs. "This new contract will complement our
remaining products and allow us to grow the range of services as well as trading
opportunities for industry participants and our clientele."
Derivatives that are redeemable for the new long-term futures contracts will consist
of cash bonds with at least 25 years of remaining term to maturity. By comparing
them, redeemable derivatives for the existing bonds contract are bonds with
remaining terms to maturity of 15 years or more. There is a rather vast difference
between the two that clients will be able to choose depending on what they prefer.
The recent policy shift towards greater issuance of long-term bonds has enabled
Tokyo Mercantile Exchange to launch this contract targeted at this important part of
the yield curve.
In all other aspects the specifications for the bond futures have seen close
resemblance with those that are in the existing treasury bond contract. They are
similar in terms of their value, low tick size, contract critical dates, and coupon.
Initially, TOMEX will list three delivery months in the bond futures, beginning with
mid 2012. There will be no notable differences or adjustments to the currently
listed treasury bond futures contract specifications and requirements. Additional
information about futures, other trading products and TOMEX’s other interests can be
found at www.tomex.jp
Contact Details: Tokyo Mercantile Exchange
Shinjuku Building, 1-3-3 Marunouchi Chiyoda-ku, Tokyo 100-0005, Japan
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