JGB Futures
Introduction
Update : Nov. 21, 2011
On October 19, 1985, TSE opened trading on 10-year JGB Futures contracts - the first financial futures contracts in Japan. The implementation of these futures contracts was a response to market participants' growing needs for a tool to manage interest rate risk, as well as an effort to further internationalize the TSE markets amidst changing global demands. The JGB Futures market has expanded rapidly and is now regarded as one of the largest futures markets in the world. In addition to the 10-year JGB Futures, TSE began trading 20-year JGB Futures contracts on July 8, 1988. (TSE has decided to halt trading on new contract months for 20-year JGB Futures beginning with the December 2002 contract, as they haven't been traded since April 1998.)
In recent years, the outstanding value of "mid-term" bonds along with effective hedging tools for such bonds have increased. In response to these needs, TSE launched 5-year JGB Futures contracts on February 16, 1996.
TSE began trading T-Bond Futures contracts on December 1,1989 to respond flexibly to changes in the international environment. However, due to a decline in trading volume, TSE suspended trading on July 1,1999, and delisted on November 1, 2001. In addition in order to a greater variety of investors needs and to enhance the function of 10-year JGB Futures, the TSE will introduce mini-10 year JGB Futures on March 23, 2009.
For more information on mini-10 year JGB Futures, please see the following link. mini-10 year JGB Futures