Tokyo Financial Exchange: Renewal Of Discount Program For Strip Trades In Three-month Euroyen Futures

This informs the renewal of existing Discount Program for Strip trade in Three-month Euroyen Futures (Euroyen). TFX has decided to expand the objects of the program into Butterfly and Condor Trades executed through Block Trade functions from August 3, 2015 to September 30, 2015.

1.  Objects

TFX recognizes a series of Euroyen block trades which meet the following requirements as A) Strip, B) Butterfly Trade and C) Condor Trade. Members who trade Euroyen under this program will be granted trading fee discount (see “Fee table” below).

     A) Strip Trade

(a) The trade is constituted of four or more consecutive contract months.
(b) A series of the block trades shall be executed by the same Trading Member.
(c) Simultaneously selling (buying) contracts of four or more consecutive quarterly months. Pack or Bundle is a typical style of Strip.

     B) Butterfly Trade

(a) The trade is constituted of three contract months.
(b) A series of the block trades shall be executed by the same Trading Member.
(c) Simultaneously buying (or selling) a contract of a near month (the first contract), selling (or buying) a contract of a far month (the second contract) in the volume twice the volume of the first contract, and buying (or selling) a contract of a further month (the third contract) in the same volume as the first contract.

     C) Condor Trade

(a) The trade is constituted of four contract months.
(b) A series of the block trades shall be executed by the same Trading Member.
(c) Simultaneously buying (or selling) a contract of a near month (the first contract), selling (or buying) one contract each of second near month (the second contract) and a third near month (the third contract), and buying (or selling) a contract of a back month (the fourth contract). Volume of each contract need to be the same.

2. Conditions

(a) All block trades (each component of Strip, Butterfly or Condor trade) shall be approved by the Exchange.
(b) As a general rule, Member who would like to apply for this program shall notify the Exchange by telephone (Market Surveillance Department +81-3-4578-2405) before TFX accepts all of the block trades.
（※）Member may use any ways other than telephone in which TFX can identify the block trades with “Butterfly Trade”, such as adding annotation like “Butterfly to the trades.

3. Fee table

For serial months, it will be applied the same discount fee as that of Quarter 1.