CME Group to Launch U.S. Dollar-Denominated TOPIX Futures

Fazzaco learned that CME Group, the world's leading derivatives marketplace, yesterday announced that it will launch U.S. dollar-denominated TOPIX futures on November 21, 2022 to expand its lineup of Tokyo Stock Price Index (TOPIX) futures, pending regulatory approval.

According to the press release, this new, cash-settled product was created to supplement the existing TOPIX futures contract, which was introduced in February 2018 and is denominated in Yen.

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"The addition of U.S. dollar-denominated TOPIX futures represents a natural extension of our Japanese index offerings as we aim to become the primary international venue for trading Japanese equity benchmark products," said Tim McCourt, Global Head of Equity and FX Products, CME Group. "We are pleased to extend our partnership with JPX in launching this new product to provide our customers greater access to Japan's key benchmark, as well as carry that index exposure without FX risk, and have the opportunity to spread against other equity indices."

"With the launch of U.S. dollar-denominated TOPIX futures from CME Group, the world's leading derivatives market, in addition to the Yen-denominated product, investors of TOPIX futures around the world will be able to enjoy higher liquidity and more efficient price formation," said Miyahara Koichiro, President & CEO of JPX Market Innovation & Research, Inc. "This new product is just the latest example of how TOPIX is the benchmark for investing in Japanese stocks."

Additionally, CME Group also provides trading in futures and options products on various key benchmark equity indexes including Dow Jones, FTSE Russell, NASDAQ, and Standard & Poor's.

As Fazzaco reported previously, the company witnessed 21% YoY increase​ in international average daily volume during Q3 2022.