Flexible Options Trading

Flexible Options Trading

Overview

Flexible Options Trading is conducted in the J-NET Market, which is a separate market from the auction market, and contracts can be set based on an application from a Trading Participant.

  • This is different from On-demand strike prices. For more details, please refer to the following page.
On-demand Strike Prices
 

Features

Flexible Options Trading has flexibility and convenience more than ever as a listed options trading.

  • Contract Flexibility
    Contractual terms such as expiration date, strike price, and settlement type can be specified to suit your strategic needs. For example, you can trade contracts like expiration date is the end of month and the final settlement is cash settlement based on closing prices.
  • Trade Flexibility
    Contracts can be created and executed on the same day. You do not have to wait until tomorrow.
  • Margin Offsetting
    Margin offsetting with other futures and options contracts is allowed.
  • An Alternative To OTC Options
    OSE listed/traded flexible options offer a solution to problems associated with OTC options, such as counterparty risk and various regulations that OTC transactions are subject to.
  • Leaflet of Flexible Options Trading is as follows.
OSE Flexible Options:customizable solutions for hedging & investmenticon-block
 

Contract Specifications

Items Securities Options Index Options
Underlying Eligible Underlying Issues *1
-Single Stocks
-ETFs
-REITs
-Nikkei Stock Average (Nikkei 225)
-TOPIX
-JPX-Nikkei Index 400
-TSE REIT Index *2
-TOPIX Banks Index *2
Trading Method Off-auction (J-NET) Only
Trading Hours From 8:20 a.m. to 5:30 p.m. (JST) From 8:20 a.m. to 8:00 p.m. (JST)
Contract Month Per day basis for a maximum 3-year period *3 Per day basis for a maximum 5-year period *3
Strike Price Two decimal places (JPY) *4
*Regular options: minimum JPY 25 interval
Two decimal places (JPY)
*Regular options: minimum JPY 125 interval
Last Trading Day Per day basis (to be advanced chronologically if the day falls on a nonbusiness day) Same as left column
SQ Date N/A Business day after last trading day (In the case of SQ settlement)
Exercise Date Last trading day (European) SQ settlement: business day after last trading day (European)    
Closing price settlement: last trading day (European)
Contract Unit Same as trading unit of underlying issue Same as regular index options    
-TOPIX REIT Index × ¥1,000
-TOPIX Banks Index × ¥10,000
Tick Size Four decimal places (JPY)
Final Settlement *5 Physical delivery
Cash settlement by closing price
Cash settlement by SQ
Cash settlement by closing price
Margin Offsetting Calculated by using SPAN®
(Margin offsetting with other index futures and options contracts is allowed.)
Give-Up/
Position-Transfer
Available
Position Limits/
Reporting of Large Positions
Yes No

  • List of Underlying Issues for Securities Options are as follows.
    Eligible Underlying Issues
  • TOPIX Banks Index Options and TSE REIT Index Options will be available only in Flexible Options Trading.
  • The minimum period from the creation day to the last trading day shall be five business days.
  • For certain underlying securities specified by OSE, one decimal place or an integer.
  • The settlement method must be specified at the time of applying to create the series and cannot be changed afterward.
 

For more details of contract specifications, please refer to the following page.

Introduction of Flexible Contract Months for Options Trading, etc.
 

Reference

Reference data for Flexible Options (All Issues, All Settlement Price and All executions for the trading day) is as follows.

Reference Data for Flexible Options