Osaka Exchange, Inc. (OSE) will partially revise the Business Regulations, etc. in connection with the introduction of JPX-Nikkei Index 400 Futures on November 25, 2014. Revisions will also be made due to the clearing system integration with Japan Securities Clearing Corporation (JSCC) scheduled on the same day. OSE will also make other necessary revisions.
Outline of Revisions
Introduction of JPX-Nikkei Index 400 Futures
(1) Underlying index
The underlying index will be JPX-Nikkei Index 400, which is jointly developed by Japan Exchange Group, Inc., Tokyo Stock Exchange, Inc. and Nikkei, Inc.
(2) Contract months and their number
The nearest five quarterly contract months will be listed, whose last trading day will be a trading day which ends on the business day preceding the second Friday of each contract month (If the second Friday is a non-business day, it shall be the preceding business day.).
(3) Contract size and tick size
a. Contract size
The contract size will be JPY 100 multiplied by the value of the JPX-Nikkei Index 400.
b. Tick size
The tick size will be 5 points.
c. Price limit
The price limit range will be 8% (12% in the first expansion and 16% in the second expansion) of the price for calculating the price limit range from the base price (rounded down to the nearest 5 points).
(4) Final settlement price
The final settlement price will be the stock index calculated based on the contract price of each component issue of JPX-Nikkei Index 400 (or the price specified by OSE for issues without any contract price on the day following the day on which the last trading day ends) at the opening of the trading session on the financial instruments exchange market established by TSE on the day following the day on which the last trading day ends.
(5) Trading fee
The trading fee per contract will be JPY 7.
Clearing System Integration with JSCC
For all futures and options transactions, the time for the transfer of positions held by non-clearing participants will be 9:00 am of the day (If this falls on a non-business day, it shall be the following business day.) following the notification day.
(*) JSCC will separately revise the time for the transfer of positions held by clearing participants.
Others
Other necessary revisions will be made.
Implementation Date
The revisions will be implemented on November 25, 2014 (except some revisions made under "3. Others" which will be implemented on December 1, 2014). However, the implementation date will be changed if OSE deems it inappropriate due to unavoidable reasons such as a malfunction in the trading system. In such case, OSE shall specify a later date for implementation.