is a Japanese
futures exchange
A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts defined by the exchange. Futures contracts are derivatives contracts to buy or sell specific quantities of a commodity or ...
that was established in April 1989 under the ''Financial Futures Trading Law'' of Japan. It principally provides trading in
futures and
derivatives on interest rates, currencies and stock indices.
History
The Tokyo Financial Exchange (TFX) was established under the Financial Futures Trading Law of Japan in April 1989.
The TFX was created to be an exchange of for financial originated products. That April, the TFX held a membership organization with the capital supplied by large financial institutions around the world. By June 1989, the Tokyo International Financial Futures Exchange (TIFFE) was trading on three-month Euroyen futures, three-month Eurodollar futures, and Japanese Yen-US Dollar currency futures.
By April 2004, the TFX was demutualized and integrated to support
corporate power
In social science and economics, corporate capitalism is a capitalist marketplace characterized by the dominance of hierarchical and bureaucratic corporations.
Overview
In the developed world, corporations dominate the marketplace, compri ...
, and the Financial Futures Trading Law was abolished. In lieu, the
Financial Instruments and Exchange Law was revised and the ''Securities and Exchange Law'' was enacted in September 2007.
With the new law, the TFX adds onto the growth of Japanese financial markets by catering to investors, as well as advocating the development of new lines of products. A TFX committee explored the idea of using a centralized counterpart to clear
OTC derivatives, but reached the conclusion that TFX is the most likely institution for clearing OTC derivatives, since "it is the only exchange in Japan that specializes in trading and clearing financial derivatives".
Its current CEO is Nobuyuki Kinoshita.
Alliances
The alliances that the Tokyo Financial Exchange share includes
Euronext.liffe, in which the two signed a Memorandum of Understanding (MOU) to develop efficient procedures of both markets. This contract entails that three-month Euroyen futures traded on LIFFE will be transferred to the TFX at the close of LIFFE’s trading day. Another alliance the TFX possesses includes the
Shanghai Futures Exchange, established May 27, 2005. Both parties signed a MOU agreement, covering information exchange on regulatory framework and market structure, financial futures products and marketing, and system infrastructure. Both parties nonetheless agree to occasional meetings on the executive and staff level.
See also
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Euronext
Euronext N.V. (short for European New Exchange Technology) is a European bourse that provides trading and post-trade services for a range of financial instruments.
Traded assets include regulated equities, exchange-traded funds (ETF), warrant ...
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New York Mercantile Exchange
The New York Mercantile Exchange (NYMEX) is a commodity futures exchange owned and operated by CME Group of Chicago. NYMEX is located at One North End Avenue in Brookfield Place in the Battery Park City section of Manhattan, New York City. ...
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Chicago Board of Trade
The Chicago Board of Trade (CBOT), is an American futures exchange, futures and options exchange that was founded in 1848. On July 12, 2007, the CBOT merged with the Chicago Mercantile Exchange (CME) to form CME Group. CBOT and three other excha ...
References
Economy of Tokyo
Futures exchanges
Financial services companies established in 1989
Financial services companies of Japan
Japanese companies established in 1989
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