Trading Method

There are no special rules for ETN trading compared to common stocks. Trading is conducted through securities companies, in the same way as common stock investment.

Trading Rules

  • Limit and Market Orders are both capable, as with stocks.
  • Tick sizes are also the same as those for stocks. Just as with stocks, order can be placed for "Bid at JPY 903" or "Offer at JPY 894".
  • Additionally, execution of transactions (the principle of price and time priority) and price limits are the same as those for common stock transactions.

Trading Units

  • Just as stock trading units vary by issue, ETN trading units differ by product.
  • For example, if the trading unit for a TOPIX-linked ETN was 10 units, for JPY 1,000 x 10 units, it would be possible to trade from JPY 10,000 with the movements of the overall TSE stock market.

Market Information

  • As with stocks, market information is provided for price, trading volume, trading value, quote information, pre-open quote information, and special quote information.
  • Additionally, open, close, low, and high prices, as well as trading volume can be found in newspapers, etc. in the same way as stocks.

ToSTNeT Trading

  • As with stocks, ETN ToSTNeT trading is available.

Trading Method on Initial Listing Date

  • The base price on the initial listing date shall be calculated based on the closing price of the underlying stock price index, etc. on the day preceding the initial listing date.
  • Price limits will be applied according to this base price from the start of auction trading on the initial listing date.
  • ToSTNeT trading shall be possible from 8:20 am on the Initial listing Date using the base price of such date.

Settlement Date

  • Settlement is conducted on T+2 or same day settlement. In the case of T+2 settlement, the money for the sale and the purchased ETN are exchanged on the 3th day counting from the transaction date, in the same manner as common stocks.

Revision of Short-Selling Restrictions

To keep a high level of credibility on ETN prices, it is necessary to have a system by which smooth arbitrage and hedge trading may occur between the ETN and equities, and the ETN and index futures. Some restrictions with regard to the short-selling are prescribed in the "Cabinet Office Ordinance on Restrictions on Securities Transactions, etc." (hereinafter, the "Ordinance").
The short-selling of ETNs is exempt from marking restrictions and price restrictions (Article 10, Item 3, Sub-item d of the Ordinance).