CME to launch first yen Topix futures contract outside Japan

CME Group, one of the world’s largest derivatives exchanges, has signed an agreement with Japan Exchange Group and will launch the first Japanese yen-denominated Topix futures contracts outside Japan by the first quarter of 2018, the group’s global head of equity products said on Thursday.

Currently, the yen-denominated Topix futures are only available on JPX, which operates several securities exchanges including Tokyo Stock Exchange and Osaka Securities Exchange.

“We see strong growth in Asia,” Tim McCourt, global head of equity products for Chicago-based CME (Chicago Mercantile Exchange) Group, said in an interview.

“We want to offer more locally relevant products in our product suite, so our platform can attract more local investors. Meantime, I believe [the launch] will bring more global investors to Asia as well.”

The move was also a response to investor requests, as international investors increasingly want to participate in the growth of the Japanese economy and hedge opportunities related to its equity markets, he added.

“We want to make our product offering more diverse for international investors.”

The contract will begin trading on CME Globex, an electronic trading platform, by the first quarter of 2018, pending the relevant regulatory review.