Tokyo Financial Exchange

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Tokyo Financial Exchange
TFX logo.gif
Founded 1989
Headquarters Tokyo, Japan
Key People Shozo Ohta, President & CEO
Products Interest rates, forex
Website http://www.tfx.co.jp/en/index.shtml

The Tokyo Financial Exchange (TFX) offers futures contracts on short-term yen-denominated interest rates and yen-based forex cross rates. It also offers options on three-month euroyen futures. It offers remote membership access through GL Trade.[1]

Tokyo Financial Exchange was ranked as the 18th largest derivatives exchange in 2010 according to the Futures Industry Association's annual volume survey of the world's largest exchanges measured by volume.[2] In the report, FIA notes that the amount of futures and options traded in 2010 by the exchange jumped by 44.9% from the previous year, to over 121.2 million total contracts.

Background

The exchange was established in April of 1989 under the Financial Futures Trading Law of Japan.[3] Because the Financial Futures Trading Law was abolished and the Financial Instruments and Exchange Law was enforced in September 2007, TFX transformed from a financial futures exchange into a more comprehensive financial exchange that handles any type of financial products.[4]

According to TFX figures, during the period April 2009 through March 2010, trading volumes on its 3-month Euroyen futures, options on Euroyen futures and all interest rate futures all declined significantly whereas trading volume on exchange forex margin contracts increased sharply.[5] On June 22, 2009 the TFX gained 'recognized market operator' status from the Monetary Authority of Singapore (MAS), allowing Singaporean investors to become remote TFX members and trade its contracts directly.[6] In January 2010 the TFX was sued by a group of Japanese investors over a scandal involving German bank Commerzbank mispricing forex contracts between the South African rand and the Japanese yen.[7]

Products

Annual Volumes

2009

Tokyo Financial Exchange ranked number 22 in 2009 in the Futures Industry Association's global list of top 53 derivatives exchanges measured by volume, up 25% on 2008's volume figure.[8] The FIA list, published in early April 2010, reports that TFX's total volume for 2009 was 83.7 million.

Key People

Shozo Ohta is the President & CEO of the Tokyo Financial Exchange.

Latest news

On April 12, 2010 the Tokyo Financial Exchange temporarily suspended trading in overnight interest rate futures until June 25, 2010 while it alters the contract's specifications, TFX announced on March 9. The newly-designed contracts will be available for trading again on Monday, June 28, 2010.[9]

References

  1. The Tokyo Financial Exchange Selects GL TRADE as Provider to Offer Remote Membership. Reuters.
  2. 2010 Annual Volume Survey. Futures Industry.org.
  3. About TFX. TFX.
  4. What is TFX?. TFX.
  5. Total Trading Volume from April 2009 through March 2010. Tokyo Financial Exchange.
  6. Tokyo Financial Exchange gets recognised market operator status in Singapore. Finetik.
  7. Japan : Commerzbank, Tokyo Financial Exchange sued for rand fiasco. TheFreeLibrary.com.
  8. 2009 Annual Volume Survey. FIA magazine.
  9. Concerning the Temporary Suspension of Overnight Interest Rate Futures. Tokyo Financial Exchange.

External links