Singapore Exchange to launch 10-yr Japan bond futures, options

Asian Economic News, April 1, 2002

SINGAPORE, March 25 Kyodo

The Singapore Exchange said Monday it will launch full-sized 10-year Japanese government bond (JGB) futures and options contracts later next month.

The contracts, which will have a notional value of 100 million yen ($750,000), will be launched for trading on April 18.

The exchange has offered smaller Japanese government bond contracts with a notional value of 10 million yen since October 1993. They will be renamed ''mini JGBs.''

It will also introduce a special facility to allow traders to offset their positions between the bigger contracts and their opposite positions in the mini-contracts.

Five quarterly months starting with the April-June period will be listed for the 10-year JGB futures contracts.

About three-quarters of those who trade in such derivatives are foreign institutions, the exchange said.

Other Japan-related derivative products offered on the exchange are the Nikkei 225 futures and options, Nikkei 300 futures and options, Euroyen futures, Euroyen LIBOR (London InterBank Offered Rate) and TIBOR (Tokyo InterBank Offered Rate).

An MSCI (Morgan Stanley Capital International) Japan Index Futures contract will be launched sometime in the second quarter of this year.