Derivatives

Tdex+ New Futures/Options Market

Update : Nov. 11, 2011

With derivatives markets continuing to grow overseas, TSE believes that invigorating the derivatives market is the key to further enhancing the appeal of the Japanese financial market. The following changes will be enacted in the TSE derivatives market on November 21, 2011.

1. Tdex+ System (Futures/Options Trading System)

Tdex+ System is a trading system based of NYSE Liffe's LIFFECONNECT® and possesses processing powers of the world's highest caliber. The introduction of such sophisticated Tdex+ System will allow users to conduct futures and options trading more smoothly than ever before.

Merits of Tdex+ System

High-speed	Order responce time 5 milliseconds in average (Actual performance which had measured in test phase)
Reliability	Large order capacity utilizing the proven reliability of LIFFE CONNECT®
High-Functionality	Diverse strategy trading functions and Delta-neutral trading functions which simultaneously trading the underlying assets of options

• (*)NYSE Liffe: a derivatives exchange in London. It is famous for its wide-range of listed products and the highest level of liquidity in the world.

• Back to Top

2. Introduction of Market Maker Scheme

Tdex+ System has made the introduction of a market maker scheme possible, which is generally adopted in US and European markets.
Market makers provide liquidity to the market by continuously placing bids and offers. The participation of market makers will facilitate smoother trading of futures and options.

• Market Maker Scheme Outline

• Back to Top

3. Introduction of Strategy Trading

Strategy trading refers to a trading method in which transactions are made for multiple issues simultaneously. Strategy trading allows transactions to be executed according to a variety of investment strategies.
For futures trading, inter-month spread trading is handled as one of the types of strategy trading. For options, a wide variety of user needs are met with strategy trading in which approximately 30 combinations of multiple options issues are available, in addition to combinations with underlying assets.
Additionally, the provision of implied-in and implied-out functions allows for placement of orders between strategy trading and individual issues trading for smoother and speedier transaction execution.

• Strategy Trading Outline

• Back to Top

4. Conformity to World-Class Trading Rules

The globalization of financial derivatives transactions is steadily progressing and there are an increasing number of domestic investors trading listed products on overseas exchanges, as well as overseas investors trading TSE listed products.
TSE is working to ensure its trading rules meet global standards as follows in order to meet the diverse needs of domestic and overseas investors.

• Expansion of Trading Hours
• Diversification of Order Types/Conditions
• Introduction of Functions to Prevent Erroneous Orders
• Circuit Breaker Rule

Leaflet

Outline of Amendments to Futures Trading Rules (English Reference Version)

• Back to Top