Futures / Options > [ J-NET Derivatives Trading  » Outline ]

1	Contract Specifications - Outline

• Applicable issues
  All issues described as follows.
  • Nikkei 225 Futures
  • Nikkei 225 mini
  • Nikkei 300 Futures
  • RN Prime Index Futures
  • Nikkei 225 Options
  • Nikkei 300 Options
  • Security Options
• Trading Hours
  • 8:20 to 16:00
  • 16:30 to 23:30
  • * Security options trading are not subject to the period from 16:30 to 23:30.
• Quotation J-NET Derivatives Trading is conducted at integral multiples of the following price unit:

  Product	Price Unit
  Nikkei 225 Futures	1 yen
  Nikkei 225 mini
  Nikkei 225 Options
  Nikkei 300 Futures	0.1 point
  RN Prime Index Futures
  Nikkei 300 Options
  Security Options	0.5 yen

• Price Limits
  • Within the range of the upper limit and lower limit calculated by the following formula. (In case an order exceeds the daily price limit of the day, the order shall be executed at a price which is within the "Price Limit" calculated by the following formula.)

    Item	Price Limit
    Stock Index Futures	(Upper Limit): X yen + X yen x 5% (Lower Limit): X yen - X yen x 5%
    Stock Index Options	(Upper Limit): X yen + Y yen x 5% (Lower Limit): X yen - Y yen x 5%
    Security Options	(Upper Limit): X yen + Z yen x 5% (Lower Limit): X yen - Z yen x 5%

    (Note)
    X yen: latest contract index (price) made on the auction market.
    Y yen: latest underlying index
    Z yen: latest price of the underlying security on the Designated Exchange
  • Volume Weighted Average Price (VWAP) according to trading hours or the price calculated by deducting/adding the handling fee predetermined with the customer from/to the VWAP
    [available only for stock index futures trading]

    Item	Price Limit
    from 8:20 to the end of Morning Session	VWAP for Whole Day of the previous trading day or VWAP for Whole Day of the previous trading day ± the predetermined handling fee
    from the end of Morning Session to the beginning of Afternoon Session	VWAP for Morning Session or VWAP for Morning Session ± the predetermined handling fee
    from the end of Afternoon Session to 16:00	- VWAP for Afternoon Session or VWAP for Morning Session ± the predetermined handling fee - VWAP for Whole Day ± the predetermined handling fee

• Minimum Trading Unit
   1 unit.


• Mark-to-the-market / Open Interest / Settlement / Margin / Trading Fees

  OSE treats each issue as a sale and purchase. (i.e. each of the above items is treated the same as that on the auction market.)

• Circulation and Announcement of Trading Volume and Contract Price to Transaction Participants and the Public

  After the end of trading session, related data shall be distributed to the media. For J-NET Derivatives Trading, 4 price information (open, high, low & close), total trading volume will be published.
  On the next day, the same data will be published on the OSE web site [Osaka Securities Exchange Daily Official List (in Japanese only)].

2	How to Use

Since non-auction trading for cash and futures / options contracts can be made simultaneously, the following types of strategies and transactions are available.

• EFP (Exchange for Physical) Trading ("Exchange" of baskets of cash and futures contracts.)
• VWAP (Volume Weighted Average Price) Trading
• Strategies for large block trades of options (strangle, calendar spread, etc.)
• Strategies by combining large block trades of futures and options (a strategy for hedging futures by options, arbitrage trades using futures and options, etc.)

In addition to the above strategies and usage, investors are able to form various strategies because cash and derivative positions can be established or adjusted simultaneously, while avoiding market impact.