News File

TIFFE to Distribute CDS Reference Rate

(March 24, 2004)

The Tokyo International Financial Futures Exchange (TIFFE) announces today, to start to distribute a benchmark rate for Credit Default Swap (CDS) transactions ('CDS Reference Rate*1') on March 26.

A CDS is a derivative contract which can transfer credit risk without directly transferring any credit asset. Reflecting the growing need to hedge credit risks in financial institutions, etc, the CDS market is expected to grow furthermore.

Currently, CDS's are transacted in the over-the-counter (OTC) market, and therefore it is desirable that a prevailed and transparent benchmark rate exists.

To answer to this current situation, TIFFE has decided to distribute CDS Reference Rates with collaboration with many financial institutions. By doing so, TIFFE hopes for market participants such as investors and financing firms to make wide use of these rates as a useful benchmark, and contribute to the development of the Japanese credit markets*2.

TIFFE will publish CDS Reference Rates on its new web site at

Financial institutions, which support to distribute CDS Reference Rates for the infrastructure development of CDS market, are the following 13 financial institutions.

• Barclays Capital Japan Limited
• Bear Stearns (Japan) Ltd.
• Credit Suisse First Boston Securities (Japan) Limited
• Deutsche Securities Limited, Tokyo Branch
• J.P. Morgan Securities Asia Pte. Limited
• Lehman Brothers Japan Inc.
• Mitsubishi Securities Co.,Ltd.
• Mizuho Corporate Bank, Ltd.
• Mizuho Securities Co., Ltd.
• Morgan Stanley Japan Limited
• Nikko Citigroup Limited
• Sumitomo Mitsui Banking Corporation
• UFJ Bank Limited

(alphabetical order)

*1 A CDS Reference Rate is the singular rate calculated from the best indicative rates in the OTC market provided by financial institutions.

*2 When TIFFE launches a new futures product related to CDS, CDS Reference Rates will be utilized for rates of the underlyings.


For more information, please contact:

Ryoji Iketani (Mr.)
Product Development Office
Tel: +81-3-3514-2440
Fax: +81-3-3514-2425
E-mail :