News File

TIFFE to launch new LIBOR-based 3-Month Euroyen Futures

(Mar 19, 1999)

The Tokyo International Financial Futures Exchange (TIFFE) announces that the launch of Three-month Euroyen LIBOR*1 futures contract has been approved at the board members meeting held on 15th March 1999.

The launch date has been set on 23rd March after the approval of regulatory authorities are received. By the launch of this contract, TIFFE will be listing both the already mainstay TIBOR*2 (Tokyo Interbank offered rates) based and the new LIBOR (London Interbank offered rates) based Three-month Euroyen futures.

As well known, the LIBOR has been the principal index rate for the derivatives division in the OTC market and the TIBOR has been the principal index rate when trading on the funds market. Therefore this parallel listing shall respond to those needs from TIFFE market participants.

As the home market of the Euroyen and a highly computerized exchange, series of reformation is done to provide a much more convenient and attractive market.
Last November, TIFFE introduced the new Segregation scheme*3 to strengthen customer protection. This January, TIFFE has commenced the API*4 system bringing more efficiency to member*s operations.
Also the Exchange Tax will be abolished from April, and Give Up facilities*5 and Half tick prices*6 will be introduced in October.

Lastly, the exchange fee(100 yen per trading unit) will be waived until the end of June 1999.

  1. LIBOR(London Interbank Offered Rates): Index on the London market which is determined by the British Banker's Association(BBA) at a.m. 11:00(London Time).
  2. TIBOR(Tokyo Interbank Offered Rates): Index on the Tokyo market which is determined by the Federation of Bankers Association of Japan(Zenginkyo) at a.m. 11:00(Tokyo Time).
  3. Segregation Scheme on Margin deposited by customers: Scheme which a member must segregate the customer's fund from its own assets.
  4. API(Application Program Interface) terminal: Terminal which connects the Exchange's trading system and member's internal system. Therefore members can directly make orders from outside Japan. Also messages from the exchange will be digitally fed.
  5. Give Up facilities: A facility which a customer's trade executed by one member can subsequently be cleared by another member.
  6. Half tick price: The minimum fluctuation price of the Three-month Euroyen futures will be halved to a 0.5 tick (0.005%).