The Tokyo Stock Exchange said trading in futures contracts has surged significantly since it launched a new trading platform for derivatives and extended trading hours.

Trading has increased more than 1,000% for mini TOPIX Futures contracts, the exchange said. JGB Futures contracts are up 147 percent and TOPIX futures are up 19%.

The exchange operator moved derivatives trading last Monday onto a platform tht is based on a system called Liffe Connect, used by NYSE Liffe in London, the largest European derivatives exchange.

Orders will get a response time of 5 milliseconds. Thirty-six thousand orders can be processed each second.

The Tdex+ system, which refers to Tokyo Derivatives Exchange, supports futures and options trading. Hours were extended to 11:30 p.m., last Monday.

Since the launch and the new hours, the exchange operator said trading volume for large JGB Futures reached a peak of 56,754 contracts on November 25, up 147 percent, TOPIX Futures reached a record trading volume of 44,559 contracts on November 25, up 18 percent and trading volume for mini TOPIX Futures recorded 11,103 contracts on November 22, up 1,070 percent from before the Tdex+ launch.

In the evening session, trading volume for large JGB Futures increased to 6,230 contracts on November 25, up 159 percent and TOPIX futures hit 1,446 contracts on November 24, up 104 percent.

Individual investors, the exchange said, also began actively trading mini Futures contracts in the extended night time zone.

Concurrent with the launch of Tdex+, TSE also introduced a Market Maker Scheme for futures products. The exchange said it had theparticipation of 35 market makers for mini-TOPIX futures and 25 market makers for mini-10 year JGB futures.

-- This article first appeared on Securities Technology Monitor.




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