Products listed and traded are as follows.
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A Three-month Euroyen Futures contract is an agreement to buy or sell a specific volume of the predetermined rate of Euroyen three-month deposit commencing on a specific future date. Euroyen Futures are effective tools to reduce risk of interestrate fluctuation, by fixing the future interest rate beforehand. The price of Euroyen Futures indicates an expected interest rate at the future point defined by a contract month. For example, a price of the contract month September 2020 is indicative of Threemonth Euroyen TIBOR (Tokyo InterBank Offered Rate) rate in September 2020.
The price for Three-month Euroyen Futures is structured as below: 100-Interest rate (%) .Therefore the following correlation is found between an interest rate and a futures price:
Ex. When an interest rate of Euroyen Three-month is 1.200%, its price will be displayed as:100-1.200=98.800
Options on Three-month Euroyen Futures are the right to enable the Option buyer
to buy or sell a certain volume of Three-month Euroyen Futures contracts at a predetermined
price (the"strike price").
As needs for Three-month Euroyen Futures have been increasing, demands for options also have been arising to apply various investment strategies based on diversified market perspectives.
The option buyer obtains the right by paying option premium to the option seller, and in consideration of the option premium, the option seller assumes the obligation to let the option buyer exercise the right (“exercise”or “option exercise”). In option trades, the option premium is dealt. The option price is influenced by the futures price of underlying assets and other factors.
There are two types of option products, i.e., put options and call options.
Put : Options that give a buyer the right to sell Euroyen Futures at a strike price.
Call : Options that give a buyer the right to buy Euroyen Futures at a strike price.
|Options||Put option||Buyer||Entitled to exercise the right to sell at a strike price|
|Seller||Obliged to buy at a strike price|
|Call option||Buyer||Entitled to exercise the right to buy at a strike price|
|Seller||Obliged to sell at a strike price|
Options products provided by TFX are of American type, giving an option buyer the right to exercise anytime prior to the expiry date. An option buyer may close the option trade by reselling a position in the market, instead of option exercise, and an option seller may close the position trade by covering a position. The buyer’s right will be exercised automatically at the expiry date if the option exercise would produce a profit (In The Money) on the expiry date. On the other hand, the buyer’s right will be extinguished automatically at the expiry date if the option exercise would produce no profit (At The Money/Out of The Money) on the expiry date.
Feature of Six-month Euroyen LIBOR futures whose underlying asset is Six-month Euroyen ICE LIBOR is same as the Three-month Euroyen futures. Please see the overview of Three-month Euroyen futures.
*Trading of Six-month Euroyen LIBOR futures has been suspended since the night session of June 30,2014.
A Over-Night Call Rate Futures is an agreement to buy or sell a specific
volume of the predetermined rate of the monthly average of Uncollateralized Overnight Call Rate (Final results) released by the Bank Of Japan on a
specific future date.
∗ Trading of Over-Night Call Rate Futures has been suspended since the night session of July 21,2017.
We can see TV report about foreign exchange transactions on a routine basis. Professionals of foreign exchange dealers at banks or security firms are main players dealing with such transactions in the inter-bank market. The transactions happen in the global inter-bank market including Tokyo, Europe and USA beyond the time-zone difference and around the clock.
The FX daily Futures contracts in TFX bases the above inter-bank foreign exchange transaction. TFX introduced the contract to allow end-users such as individual investors to make transactions in fair and transparent manner. It allows larger amount of business than deposited margin (so called “leverage effect”). Therefore, investment efficiency is higher compared with foreign currency deposit.
Click 365 (FX Daily Futures contracts) has grown steadily at TFX since its listing, and Click Kabu 365 (Equity Index Daily Futures contracts) was successively listed in November 2010. This new listing of the equity index signaled another investment choice for investors trading foreign exchange contracts using Click 365. With the new listing, the TFX aims to further improve user convenience. Unlike existing equity index futures, there are no contract periods for Click Kabu 365, and it allows investors to trade overseas equity indices in contract prices denominated in yen, and Nikkei 225 Daily Futures contract can be traded nearly any time, 24 hours a day.
Trading Members shall be classified into three types, "Interest Rate Futures Trading Members" ,"FX Daily Futures Trading Member" and "Equity Index Daily Futures Trading Member".