The full-sized JGB Contract will have a notional value of ¥100 million. It will be traded concurrently with the existing one-tenth sized SGX JGB Contract, which has a ¥10 million notional value and will be renamed as "Mini JGB".
A unique fungibility facility with a position and margin offset mechanism will be introduced to enable traders to offset their positions between the full-sized SGX JGB Futures and Options Contracts and their corresponding opposite positions in SGX Mini JGB Futures and Options Contracts, in a ratio of 1 full-sized contract to 10 Mini contracts. These fungible full-sized and mini JGB Contracts provide market participants the flexibility to employ a broader variety of cost-effective strategies in their trading, arbitraging and risk management activities.
As in the case of the existing SGX Mini JGB Contract, the trading hours for the full-sized SGX JGB Contract will be from 7.45 am - 5.15 pm, Mondays to Fridays. Five quarterly months will be listed for the full-sized SGX JGB Futures Contract. The full-sized SGX JGB Options Contract will have two quarterly contract and two nearest serial contract months. The full-sized SGX JGB Futures Contract, as in the case of the existing SGX Mini JGB, will be cash-settled upon its expiration.
