CME is launching the following Yen-denominated TOPIX Index futures contracts on February 5, 2018.
CME will be the only derivatives exchange outside of Japan to offer futures contracts based on the two main Japanese indices – Nikkei 225 and TOPIX. CME will also be the only exchange to offer BTIC functionality on a Japanese benchmark product.
Yes. Basis Trade at Index Close (BTIC) on TOPIX futures will be available for trading on CME Globex starting on the launch date, February 5, 2018. Please note that the minimum tick increment will be 0.10 index points (¥500) for BTIC trades.
No. USD-denominated TOPIX is currently not offered domestically at the Japan Exchange Group (JPX). As such, CME does not possess the right to list a USD-denominated TOPIX contract at this time.
TOPIX futures will be listed on the customary U.S. equity index futures listing cycle – there will be five concurrent futures that expire against the opening index value on the second Friday of March, June, September, and December. The contract size will be ¥5,000 x the TOPIX Index, and the minimum tick increments will be:
Outright & Calendar Spread: 0.50 index points= ¥2,500
BTIC: 0.10 index points= ¥500
|Index Futures Contracts||Underlying Index (Bloomberg)||CME Globex||Bloomberg Front Month||Thomson Reuters Front Month|
|TOPIX Futures||TPX Index||TPY||TPYA Index||TPYc1|
|BTIC on TOPIX||TPX Index||TPB||TPTA Index||TPBc1|
CME will list five months in the March Quarterly Cycle (Mar, Jun, Sep, Dec).
TOPIX futures will follow the CME Group Holiday Calendar and will be available for trading on Japan exchange holidays except for days that are marked CME Globex holidays. BTIC on TOPIX will close on Japan exchange holidays and CME Globex holidays.
Daily settlement for TOPIX futures (TPY) is based on the 30-second volume-weighted average price (VWAP) of CME Globex trades between 4:59:30 p.m. and 5:00:00 p.m. ET.
Final settlement value is based on the Special Opening Quotation (SOQ) on the second Friday of the contract month. The SOQ is based on the opening prices on the Tokyo Stock Exchange (TSE) of each component stock in the TOPIX Index, regardless of when those stocks open.
No. Beginning February 5, TOPIX products will be eligible to trade only on CME Globex and via EFP transactions.
TOPIX futures will be part of the “Nikkei/TOPIX” product suite according to the current CME Fee Schedule.
As far as membership, the products will reside in the IOM Division.
Those market participants whom are currently subscribing to the CME DCM market data will receive the TOPIX product data as part of that existing package at no additional charge. If a participant that does not currently subscribe to the CME DCM market data wishes to access TOPIX futures market data, they will need to subscribe to CME DCM market data subject to the current market data fee schedule.
The initial margin estimate for outright TOPIX Index futures contract is approximately ¥412,500 (~4.4% of the contract notional value). This is a preliminary margin estimate as of January 12, 2018 and is subject to change. Please visit the CME web page for the latest margin information.
Cash variation margin can only be satisfied in Yen. However, initial and maintenance margin can be met with assets in other currencies, including USD; a haircut is applied when using a different currency. For more information, please visit this link.
Margins and margin credits are based on current market conditions and, thus, are subject to change. Below are the margin credits estimates as of January 12, 2018.
Learn More about CME Margins:
No. The existing Mutual Offset System (MOS) agreement is made between CME and SGX and SGX does not have rights to list or clear TOPIX futures. Therefore, the CME TOPIX contract cannot be added to the MOS agreement. Since there is no such agreement between CME and JPX, CME TOPIX positions are not transferable with JPX TOPIX positions.
Yes, CME designed a market maker program for TOPIX futures and BTIC to assure continuous two-sided markets are quoted on-screen throughout the trading day beginning February 5.
Delayed quotes will be available online on the CME Group website. You can also access quotes through major quote vendors.
To access CME Globex, you must have a relationship with a CME Clearing Member Firm.
Visit cmegroup.com/topix for the latest information. You can fill out the form on this page to stay informed of TOPIX product updates.
TOPIX® is a trademark of Tokyo Stock Exchange, Inc. Chicago Mercantile Exchange Inc. has been licensed by Tokyo Stock Exchange, Inc. to use TOPIX®. Tokyo Stock Exchange, Inc. shall not be responsible for any damage resulting from the sale of the Licensed Product.
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