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 Oct.5th, 2009, TSE lists Individual Options on 143 stocks, 3 ETFs and 9 REITs. In total, 155 individual options are listed .

With individual options, investors can tailor their positions to their financial situation, stock market outlook and risk tolerance.

Contract Specifications of Individual Options

	Individual Options
Contract	Call and Put options based on listed securities selected by TSE Underlying securities
Trading Hours	Pre-Open (Order Submit) : 8:40 Morning Open: 9:00-11:00 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) Trading Period: 8 months for quarterly months 2 months for non-quarterly months Trading Calendar
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. Strike Price Intervals Less than ¥500 ¥25 ¥500 - less than ¥1,000 ¥50 ¥1,000 - less than ¥2,000 ¥100 ¥2,000 - less than ¥5,000 ¥200 ¥5,000 - less than ¥10,000 ¥500 ¥10,000 - less than ¥50,000 ¥1,000 ¥50,000 - less than ¥100,000 ¥2,500 ¥100,000 - less than ¥200,000 ¥10,000 ¥200,000 - less than ¥500,000 ¥20,000 ¥500,000 - less than ¥1,000,000 ¥50,000 ¥1,000,000-less than¥2,000,000 ¥100,000 ¥2,000,000-less than¥5,000,000 ¥200,000 ¥5,000,000-less than¥10,000,000 ¥500,000 ¥10,000,000-less than¥20,000,000 ¥1,000,000 ¥20,000,000-less than¥50,000,000 ¥2,000,000 ¥50,000,000 - ¥5,000,000
Trading Unit	Correspondent to the minimum trading unit of the underlying security Underlying securities
Minimum Tick Size	Option Premium Tick size Less than ¥1,000 * ¥0.5 ¥1,000 - less than ¥3,000 ¥ 1 ¥3,000 - less than ¥30,000 ¥5 ¥30,000 - less than ¥50,000 ¥25 ¥50,000 - less than ¥100,000 ¥50 ¥100,000 - less than ¥1,000,000 ¥500 ¥1,000,000 - ¥5,000 (*) in case when option premium is less than ¥1,000 and the trading unit of the underlying security is odd, tick size will be set as ¥1.
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: Base price of Underlying Min. Max. Less than ¥500 ¥10 ¥20 ¥500€ - less than ¥1,000 ¥ 20 ¥40 ¥1,000 - less than ¥3,000 ¥50 ¥100 ¥3,000 - less than ¥5,000 ¥100 ¥200 ¥5,000 - less than ¥10,000 ¥200 ¥400 ¥10,000 - less than ¥30,000 ¥500 ¥1,000 ¥30,000 - less than ¥50,000 ¥1,000 ¥2,000 ¥50,000 - less than ¥100,000 ¥2,000 ¥4,000 ¥100,000 - less than ¥300,000 ¥5,000 ¥10,000 ¥300,000 - less than ¥500,000 ¥10,000 ¥20,000 ¥500,000- ¥20,000 ¥40,000 Buy orders exceeding above maximum or Sell orders below above minimum are unaccepted. * 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 Trading Calendar
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 from the day of exercise.
ToSTNeT Trading	Available ToSTNeT Trading
Give-up	Available
Position Transfer	Available
Reporting of Large Positions	Applicable Position limits
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

Contract month on Individual options