1. Product Overview
(1) Products to be Introduced- At this moment, 9 currency pairs are planned to be introduced. They consist both of direct quote foreign exchange rates, such as US Dollar/ Japanese Yen, and cross currency foreign exchange rates, such as Euro/US Dollar.
- OSE will further consider adding other currency pairs before trading commencement, in view of market demands, etc.
- Trading unit shall be determined by OSE for each currency pair at appropriate units, to make the contract value approximately 100 million yen (e.g. 10,000 currency units in case of US Dollar/ Japanese Yen).
- One trading day starts at 7:00 a.m. JST and ends at 6:00 a.m. on the next calendar day.
- No trading will be available on Saturdays and Sundays (trading will end at 5:30 a.m. on Saturday and resume at 7:00 a.m. on Monday). Trading will be available on Japanese national holidays.
- Orders will be accepted from 15 minutes before trading starts.
- New trading and clearing qualifications only for FX trading will be introduced, separately from the existing qualifications for cash trading and futures etc. trading. In order to maintain the quality of the market and the risk level as a clearing organization, requirements for qualifications will be set at the same level as the existing qualifications.
- OSE will appoint a market maker, based on the application from transaction participants.
- FX Trading will be conducted in an order book at auction, the same as existing cash or futures etc trading.
- Although no price limit will be set, orders at a price exceeding a certain range from the last price or orders exceeding a certain amount will not be accepted.
- Market makers will be required to display buy and sell orders continuously.
- Clearing and settlement will be conducted in Japanese Yen (Trading in non-JPY trading will be converted in Japanese yen to be settled).
- Payment and/or receipt of exchange differences (cash differences and swap point), together with margin, will be conducted through decreasing and/or increasing the balance in margin account.
- Margin will be managed separately from the margin for futures and options trading.
- OSE will set a margin requirement (expected to be approximately one-thirtieth of the notional value) per one position for each currency pair.
- Trading is scheduled to be launched by March, 2009.