Options on JGB Futures

Introduction

Update : Jan. 30, 2003

The TSE opened trading in the 10-year JGB Futures contract, the first financial futures contract in this country on October 19, 1985 in response to the growing needs of securities companies, financial institutions and other market participants for tools to manage interest rate risk. The 10-year JGB Futures market expanded rapidly, and became one of the largest futures markets in the world. On the basis of this success, the TSE started trading in options on JGB Futures on May 11, 1990 as an additional hedging tool to manage interest rate risk.

In November 2000, in an attempt to expand medium term investment opportunities, TSE launched Options on 5-year JGB Futures. However, TSE has decided to halt trading on new contract months for Options on 5-year JGB Futures beginning with the September 2002 contract, as they haven't been traded since December 2000.