Tokyo Stock Exchange to begin calculation and publication of TOPIX Leveraged and TOPIX Inverse Indices

Tokyo Stock Exchange to begin calculation and publication of TOPIX Leveraged and TOPIX Inverse Indices

09/11/2011

In response to various needs for stock price indices, Tokyo Stock Exchange, Inc. (TSE) will begin calculating and publishing (i) the “TOPIX Leveraged Index,” which moves at twice the fluctuation of the TOPIX index, (ii) the “TOPIX Inverse Index,” which moves in the opposite direction of fluctuations in the TOPIX index, and (iii) the “TOPIX Double Inverse Index,” which moves at twice the fluctuation in the opposite direction of the TOPIX index.

1. Outline

Index name TOPIX Leveraged (2x) Index
TOPIX Inverse (-1x) Index
TOPIX Double Inverse (-2x) Index
Calculation Method Daily return is calculated by applying a leverage factor (2, -1 or -2) to the TOPIX index return from the previous day. (Please see the index calculation methodology for details)
Calculation Method
Projected Launch Date January 4, 2012
Base Date/Base Value December 30, 2011 10,000 points
Total Return Index Not available
Calculation Interval For the time being after the launch, TSE will calculate index values based on closing stock prices once a day and publish them on the TSE website.
Index Values

In late January of 2012 (tentative), index values will begin being disseminated to securities companies, information vendors, etc. on a real time basis (every 15 seconds) through the Market Information System (MAINS)

2. Index Usage

A license is required to use these indices for the purposes of composing various financial products. TSE will announce details regarding the license application procedure, etc. at a later date. Please refer to the following page, “TOPIX License” for details: