TOPIX Futures Frequently Asked Questions

Launch & Overview

1. When will TOPIX products become available for trading at CME?

CME is launching the following Yen-denominated TOPIX Index futures contracts on February 5, 2018.

  • JPY-denominated TOPIX Index futures
  • BTIC on JPY-denominated TOPIX Index futures

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.

2. Will Basis Trade at Index Close (BTIC) on TOPIX futures be available for trading on CME Globex?

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.

Learn more about BTIC

3. Will CME also list USD-denominated TOPIX futures?

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.

Product Details

4. What are the TOPIX futures contract specifications?

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

View full TOPIX Index futures contract specifications

5. What are the codes for these products?

Index Futures Contracts Underlying Index (Bloomberg) CME Globex Bloomberg Front Month Thomson Reuters Front Month
Outright Futures
TOPIX Futures TPX Index TPY TPYA Index TPYc1
BTIC Futures 
BTIC on TOPIX TPX Index TPB TPTA Index TPBc1

6. How many TOPIX contracts will be listed at a given time?

CME will list five months in the March Quarterly Cycle (Mar, Jun, Sep, Dec).

7. What are the trading hours on CME Globex?

  • Outright: Sunday – Friday 6:00 p.m. – 5:00 p.m. ET with a 60-minute trading halt each day beginning at 5:00 p.m. ET
  • BTIC: Sunday – Friday 6:00 p.m. – 1:00 a.m./2:00 a.m. ET (3:00 p.m. Tokyo time)

8. Are TOPIX futures and BTIC on TOPIX available for trading on Japan holidays?

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.

9. How is the daily settlement price of TOPIX futures determined?

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.

10. How are TOPIX futures final settlement price of the futures determined?

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.

11. Are the TOPIX products eligible for block trading?

No. Beginning February 5, TOPIX products will be eligible to trade only on CME Globex and via EFP transactions.

Fee & Margin Detail

12. What are the fees for TOPIX futures?

TOPIX futures will be part of the “Nikkei/TOPIX” product suite according to the current CME Fee Schedule.

View latest Fee Schedule

13. In which division will the TOPIX futures reside?

As far as membership, the products will reside in the IOM Division.

14. Will there be additional market data fees to trade the TOPIX futures?

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.

15. What are the margin requirements for TOPIX futures?

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.

16. What are the available margin credits for offsetting positions between the TOPIX futures and CME’s major U.S. benchmark index futures?

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.

  • TOPIX versus Nikkei (USD) offset at a 1 to 1 ratio: 70% credit
  • TOPIX versus Nikkei (JPY) offset at a 1 to 1 ratio: 70% credit
  • TOPIX versus E-mini S&P 500 offset at a 3 to 2 ratio: 65% credit
  • TOPIX versus E-mini Nasdaq-100 offset at a 3 to 2 ratio: 55% credit
  • TOPIX versus E-mini Dow Jones offset at a 3 to 2 ratio: 65% credit
  • TOPIX versus E-mini Nifty 50 offset at a 1 to 4 ratio: 60% credit
  • TOPIX versus E-mini Russell 2000 offset at a 1 to 1 ratio: 45% credit
  • TOPIX versus E-mini S&P MidCap 400 offset at a 2 to 1 ratio: 60% credit

Learn More about CME Margins:

17. Will the TOPIX contracts be MOS eligible?

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.

Additional Information

18. Will there be on-screen market makers for the TOPIX products?

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.

19. How can I see prices for TOPIX Index futures?

Delayed quotes will be available online on the CME Group website. You can also access quotes through major quote vendors.

20. How can I get access to CME Globex?

To access CME Globex, you must have a relationship with a CME Clearing Member Firm.           

Learn more about connecting to CME Globex

21. Where can I find more information on the TOPIX products coming to CME?

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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Please reach out to the CME Group Equity Products Team for additional inquiries:

Equity Products Team