Update : Nov. 21, 2011
"mini-10 year JGB Futures" are one-tenth the size of 10-year JGB Futures.
The TSE's popular 10-year JGB Futures are currently traded primarily by institutional investors. Thus, in order to meet 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.
The contract size of the mini-10 year JGB Futures is 10 million JPY, one tenth the size of normal JGB Futures which have a value of 100 million JPY. Mini-10 year JGB Futures will provide investors with a convenient means to trade in smaller denominations. The minimum fluctuation of the mini-10 year JGB Futures is 0.005 JPY, compared to 0.01 JPY per 100 JPY for JGB Futures.
|Minimum fluctuation||Contract Size||Value of 1 tick||Final Settlement Method|
0.01 JPY per
100 JPY face value
100 million JPY
|10,000 JPY||Delivery of JGBs|
|mini-10 year JGB Futures||0.005 JPY||10 million JPY||500 JPY||Cash Settlement based on Final Settlement Price|
Although the final settlement method for JGB Futures is the actual delivery of the underlying JGB, for mini-10 year JGB Futures, the settlement method is conducted via cash transfer according to the Final Settlement Price. The Final Settlement Price for mini-10 year JGB Futures is the opening price of the 10-year JGB Futures for the same contract month as conducted on the business day following the last day of trading for the mini-10 year JGB Futures contract. In cases where there is no opening price for the 10-year JGB Futures with same contract month, as a result of no trades being executed or a trading suspension, the TSE will set the final settlement price for the mini-10 year JGB Futures.