Tokyo Financial Exchange will launch this month a futures contract tied to the
Bank of Japan overnight unsecured call rate (TONA), aimed at letting traders
hedge or position for rate moves during the two upcoming BOJ policy meetings.
The exchange said existing three-month TONA futures have not met traders’ needs
as BOJ policy adjustment has accelerated; the TFX wholesale head said rate
volatility and demand for derivatives are rising. Three-month TONA futures
volumes have fallen in recent months, with September volume down nearly 50% YoY
despite widespread expectations of further BOJ tightening.
