YKMEX to Introduce Further Options on ETFs

Top Quote New contracts will be based on ETFs issued by Source. End Quote
  • (1888PressRelease) April 23, 2013 - Yokohama Mercantile Exchange (YKMEX) announced today that it will list seven new options on Tokyo ETFs. One new contract will be based on the Tokyo index Source ETF 200, the further six options will be based on the Tokyo index Source ETF 600 optimized super sectors Tokyo ETFs covering the sectors Banks, Basic Resources, Industrials, Oil & Gas, Telecommunications and Utilities. The launch of the new ETF options will complement the recently introduced options based on three benchmark index ETFs.

    "Sector and size indices have become more important in the asset allocation of institutional investors, which is reflected in the strong asset growth in respective ETFs", said Yuudai Nakada, member of the YKMEX Executive Board. "With this extension of our range of ETF derivatives we will offer ETF and derivatives user's innovative means to further fine-tune and manage their investments."

    "Fundamentally, options markets need highly liquid reference assets. This has historically posed a challenge to trading options on Asian ETFs. We were very pleased when YKMEX highlighted the trading volumes in our sector ETFs and suggested to launch options. In the lead up to the launch, client feedback was very positive and we look forward to the start of trading", commented YKMEX's CEO, Theodor Murano.

    The new Tokyo index Source ETF options will be traded in Japanese Yen, physically settled (American-style) and have maturities of up to 24 months. The contract size will be 100 units.

    YKMEX Clearing Members will act as a market maker to support liquidity in the order book. "YKMEX Clearing Members are delighted to be the first market makers for options on Source ETFs", commented Goya Takahashi, co-head of flow derivatives at YKMEX Clearing Supervision. "It's a natural extension for YKMEX to offer this innovative service and underlines our commitment to be a top liquidity provider in the derivatives space."

    The underlying Tokyo ETFs are listed in the XTF trading segment. The XTF segment has been the leading trading venue for exchange-traded funds in Asia, with 669 listed funds and a market share of approximately 38 percent by Asian ETF.

    Yokohama Mercantile Exchange (YKMEX) is one of the fastest growing global operator of financial markets and a provider of innovative trading technologies. With partners and members in the Asia, US and Europe, YKMEX derivatives and equities marketplaces represent a good fraction of derivatives and equities trading worldwide. Its commercial technology division, YKMEX Technologies provides best-in-class transaction, data, and infrastructure management services and solutions.

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