Tokyo Stock Exchange Board report for February 2010

Tokyo Stock Exchange Board report for February 2010


Tokyo Stock Exchange, Inc. (TSE) and NYSE Liffe, a subsidiary of NYSE Euronext Group and derivatives exchange in the United Kingdom, have decided to list TOPIX futures on NYSE Liffe and establish a scheme that transfers daily final positions (i.e., a position transfer scheme). Additionally, the two exchanges have agreed to apply the same scheme to Japanese Government Bond futures (JGB futures) that were already listed on NYSE Liffe.

Under this scheme, with respect to TOPIX and JGB futures trading (both limited to large transactions), all positions related to transactions executed on NYSE Liffe will be settled using settlement prices determined by the exchange on the day. At the same time, the same quantity of transactions as that settled on NYSE Liffe will be created with the said settlement prices on the following business day at the TSE. This will provide investors with opportunities to trade through the evening (from 3:00 pm to 6:00 am) in Japan as if they conducted trading at the TSE during the daytime. In addition, the TSE considers that the scheme will significantly expand trading hours for TOPIX and JGB futures as well as allow market participants and investors to enjoy increased convenience of position management.

The position transfer scheme is scheduled to be implemented by the end of autumn 2010 after the TSE solicits public comments during the period from February 22, 2010 to March 24, 2010 on the outline concerning the position transfer arrangement with NYSE Liffe.

*  For a "Memorandum of Understanding on Listing TOPIX Futures on NYSE Liffe", please refer to the "Board Report for November 2009".