March 22, 2012 - (Newswire.com)
Osaka Commodity Exchange, one of the industry's biggest and most diverse futures marketplace recently announced the launch of long-term futures beginning this year. These contracts will be part of and subject to the regulations and laws of the industry authorities. It will also be approved pending the board's ruling.
"The long-term futures has now become part of OCEX's product listing as part of our response to overwhelming customer demands and requests for a contract that is similar to this one that we have launched," said Tokubey Ito, OCEX Director and Vice President of Consumer Affairs. "This new contract will complement our remaining products and allow us to grow the range of services as well as trading opportunities for industry participants and our clientele."
Derivatives that are redeemable for the new long-term futures contracts will consist of cash bonds with at least 25 years of remaining term to maturity. By comparing them, redeemable derivatives for the existing bonds contract are bonds with remaining terms to maturity of 15 years or more. There is a rather vast difference between the two that clients will be able to choose depending on what they prefer. The recent policy shift towards greater issuance of long-term bonds has enabled Osaka Commodity Exchange to launch this contract targeted at this important part of the yield curve.
In all other aspects the specifications for the bond futures have seen close resemblance with those that are in the existing Treasury bond contract. They are similar in terms of their value, low tick size, contract critical dates, and coupon. Initially, OCEX will list three delivery months in the bond futures, beginning with mid 2012. There will be no notable differences or adjustments to the currently listed Treasury bond futures contract specifications and requirements. Additional information about futures, other trading products and OCEX's other interests can be found at www.ocex.org
OCEX is an all-electronic derivative, options and futures market established in the last century. It began trading as an alternative to the prevailing market models of the East Asia.
Since its establishment, OCEX has successfully delivered to its participants an efficient, transparent marketplace, cutting edge technology, and best price filtering for customer order execution.
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Original Source: OCEX Announces the Launch of Long-Term Bond Futures for Clients