Chicago - CME Group and Japan Exchange Group (JPX) have announced the launch of Japanese Yen-denominated Tokyo Stock Price Index (TOPIX) futures contracts to begin trading on CME Globex by Q1 2018, pending all relevant regulatory review periods.
This new financially-settled TOPIX futures contract will be listed with and subject to the rules and regulations of CME. The TOPIX is a free-float adjusted market capitalization-weighted index that is calculated based on all common stocks listed on the First Section of Tokyo Stock Exchange (TSE), the cash market of JPX, and is widely used as a benchmark by institutional investors in Japan.
Under the agreement, CME Group will have a worldwide exclusive license outside of Japan to the TOPIX Index for use as a reference rate in listed Japanese Yen-denominated futures and options on futures.
CME Group has also entered into collaboration with JPX on promoting connectivity between their respective co-location facilities located in Aurora, IL and Tokyo.