Update : Nov. 19, 2011
Tokyo stock exchange, Inc. (TSE) introduced Individual Options in order to satisfy the diversifying needs of market users and provide hedging tool for individual securities on July 18, 1997. As of Nov.19th, 2011, TSE lists Individual Options on 155 stocks, 5 ETFs and 8 REITs. In total, 168 individual options are listed .
With individual options, investors can tailor their positions to their financial situation, stock market outlook and risk tolerance.
|Contract||Call and Put options based on listed securities selected by TSE
|Trading Hours||Pre-Open (Order Submit) : 8:40
Morning Open: 9:00-11:30
Pre-Open (Order Submit) : 12:05
Afternoon Open: 12:30-15:10
|Contract Month||2 closest serial months plus 2 closest quarterly months (March, June, September, December)
8 months for quarterly months
2 months for non-quarterly months
|Strike Price||ATM +/- 2 Contracts
5 exercise prices with the intervals based on the last execution price of the underlying security set on the first trading day. Additional strikes will be set in conjunction with the underlying fluctuation.
|Trading Unit||Correspondent to the minimum trading unit of the underlying security
|Minimum Tick Size||
|Dynamic Price Limit Range(DPR)||Nearest 2 contract months: 20% of the Base Theoretical Price
Other contract months: 30% of the Base Theoretical Price
Maximum and minimum of DPR:
* Theoretical Price is calculated from the subjected underlying securities' latest execution price.
|Daily Price Limit||Base price ± (Daily Price Limit of the underlying security +DPR)
*Base price is the Theoretical Price calculated from the subjected underlying securities' base price.
|First Trading Day||First business day following the last trading day of the previous contract
|Last Trading Day||The business day prior to 2nd Friday of the respective contract months|
|Exercise Day||The last trading day (European type option)|
|Payment or Receipt of Option Premium||The business day following the transaction day (T+1)|
|Settlement Regarding Exercise||Cash settlement and physical delivery of the underlying on the 5th day counting from the day of exercise.|
|Reporting of Large Positions||Applicable
|Trading Regulations||TSE will take following measures when there is an unusual trade or apprehension of such:
1) Alteration of Daily Price Limit
2) Advance of margin deposit date
3) Raise of margin deposit or limitation of securities deposit
4) Decrease of securities' credit for margin deposit
5) Limitation or prohibition of Equity Options trading
6) Limitation of open interest
|Cancellation Policy||The TSE may apply the rules for canceling executed transactions in futures/options only when it deems that the market will be significantly disrupted due to smooth performance of settlement of executed transactions pertaining to the erroneous order being extremely difficult and/or other reasons.|
|Date of Market Establishment||July 18, 1997|