TIFFE launches \ Swapnote™

(April 28, 2003)

Tokyo, 28 April 2003 - TIFFE (The Tokyo International Financial Futures Exchange) has officially announced to list \ Swapnote™, which has been jointly developed with Euronext.liffe, ICAP, and AVM, on May 9th. The contracts which will be listed at launch will be the 5-year and the 10-year contracts, covering the mid-to-long-term markets.
Jiro Saito, TIFFE's Chairman and Chief Executive, explains: "¥ Swapnote™ is an exchange-listed product based on yen interest rate swaps, a 1200 trillion yen market currently traded by OTC. US $ and the € Swapnote™ contracts are already actively traded on LIFFE. TIFFE believes the \ Swapnote™ will become one of its leading contracts in the future. With today's implementation of the LIFFE CONNECT™ system, TIFFE plans to list further new products taking advantage of the functionality of the LIFFE CONNECT™ system."
LIFFE's Chairman, Sir Brian Williamson, upon his visit to Tokyo for TIFFE's reception to celebrate the new system implementation said, "I am particularly pleased to welcome TIFFE into the global Swapnote™ franchise. The launch of \ Swapnote™ complements the listing on Euronext.liffe of € Swapnote™ and $ Swapnote™. Two years after their inception, Swapnote™ products are now available in the three major world currencies and in all three of the world's major time zones, using the unrivalled functionality of LIFFE CONNECT™."
Note: Final authorization will be necessary for the listing of \ Swapnote™.

-ends-

Contact:
TIFFE Marketing and Research Section（Fujimaru, Izawa, Asakura）
tel +81-3-3514-2415
E-mail ：　info@tiffe.or.jp
http://www.tiffe.or.jp

Euronext.liffe Press Office
tel +44-20-7623-0444
E-mail ：　press.office@liffe.com
http://www.liffe.com

(Notes to editors)

1.\ Swapnote™
The \ Swapnote™ fulfils a growing need for an exchange-traded derivatives product referenced against the yen swap (inter-bank) curve.
The innovative Swapnote™ contract design creates a standardized exchange-traded swap futures contract which trades like a bond futures contract with the price sensitivity of an interest rate swap, so that \ Swapnote® futures will reflect actual price changes in the over-the-counter (OTC) market for plain vanilla swaps more closely that any other futures contract.
The major benefits of \ Swapnote™ are:

•	As a highly reliable middle to long term interest rate indicator
•	Price transparency and efficiency due to exchange-trading
•	Removal of counter party credit risk limitations

--- \ Swapnote™ contract specifications ---

Product name	5 year ¥ Swapnote™	10 year ¥ Swapnote™
Unit of trading	¥ 10,000,000 notional principal amount	¥ 10,000,000 notional principal amount
Quotation	Per ¥ 100 nominal value	Per ¥ 100 nominal value
Minimum price movement (Tick value)	0.01 (1,000 yen)	0.01 (1,000 yen)
Standardized contract	Standardized 5 year \ Swapnote™ Commencement date:Third Wednesday of the contract month in principle Fixed Interest Rate:3%(actual/365 days(Fixed) base, semiannual coupon payment) Floating Interest Rate:6 month Euroyen LIBOR Notional Principle Amount:10 million yen Term to maturity:5 years	Standardized 10 year \ Swapnote™ Commencement date:Third Wednesday of the contract month in principle Fixed Interest Rate:3%(actual/365 days(Fixed) base, semiannual coupon payment) Floating Interest Rate:6 month Euroyen LIBOR Notional Principle Amount:10 million yen Term to maturity:10 years
Contract month	March, June, September and December such that the nearest two delivery months are always available for trading (maximum 6 months)	March, June, September and December such that the nearest two delivery months are always available for trading (maximum 6 months)
Last trading day	Two business days prior to the Commencement Date	Two business days prior to the Commencement Date
EDSP	The sum of the discounted notional cash flows (fixed interest rate (3%) per 100 yen (given semiannually) and the notional principal amount per 100 yen), each of which has been given a present value using zero coupon discount factors.	The sum of the discounted notional cash flows (fixed interest rate (3%) per 100 yen (given semiannually) and the notional principal amount per 100 yen), each of which has been given a present value using zero coupon discount factors.
Settlement	Cash Settlement	Cash Settlement

"Swapnote™ is a trade mark of the ICAP plc group ("ICAP") and has been licensed for use by LIFFE Administration and Management ("LIFFE") and sub-licensed to TIFFE.
The Swapnote™ contract design and algorithm are protected by patent (US 6,304,858 B1), owned by Adams, Viner and Mosler Ltd. ("AVM") and exclusively licensed to LIFFE.
Yen Swapnote™ has been devised in cooperation with Euronext.liffe and is listed on TIFFE under licence from LIFFE, with the permission of ICAP and AVM."

2.The Tokyo International Financial Futures Exchange, (TIFFE), founded in 1989, is widely known as the home market for Euroyen futures and now caters to a wide range of domestic and international investors. Since its foundation, TIFFE has been the leading Japanese exchange in terms of introducing global standard functions to its operations. Some good examples are the introduction of an evening session and the give-up facility. For more information about TIFFE, visit the TIFFE website at http://www.tiffe.or.jp.

3.Euronext.liffe is the derivatives business of Euronext, comprising the Amsterdam, Brussels, LIFFE, Lisbon and Paris derivatives markets. It was formed following the purchase of LIFFE (the London International Financial Futures and Options Exchange) by Euronext in 2002. Euronext.liffe is creating a single market for derivatives, by bringing all its derivatives products together on a single electronic trading platform, LIFFE CONNECT™. The replacement of multiple trading venues with a single market will reduce costs for both Euronext.liffe itself and its customers, and make cross-border trading easier and cheaper. Today, Euronext.liffe is the world's largest derivatives exchange, by value of the business transacted through the exchange every day. For more information visit www.liffe.com