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Jul. 02, 2025 OSEJSCC JPY 1 Billion (100 Contracts) of 20-year JGB Futures Executed

On July 2, 2025, 100 contracts of the September 2025 contract of mini 20-year JGB Futures (JPY 1 billion in face value) were executed on Osaka Exchange (OSE). This marks the first transaction in this product since June 10, 2022.

10-year JGB Futures remain the most widely used hedging tool of JPY interest rate risks. However, in April and May 2025, sharp fluctuations in the super-long-term ranges of over-the-counter (OTC) JGB and interest rate swap markets prompted market participants to reaffirm the importance of 20-year JGB Futures. With cooperation from market participants, including market makers, OSE has been working to improve intraday liquidity in 20-year JGB Futures, which has now led to today’s transaction.

Although JPY interest rates were low and stable from the late 1990s, the end of negative interest rates and removal of yield curve control (YCC) in March 2024, followed by two hikes in the policy rate (TONA) in July 2024 and January 2025, has led to renewed movement in JPY interest rates.

JPX offers a variety of products and services to meet the demand for diverse interest rate risk management tools, from short-term to super-long-term.

⋅ 3-Month TONA Futures
Since listing in May 2023, the trading value of TONA 3-month Interest Rate Futures reached JPY 53.47 trillion (USD 37 billion) in 2024, more than ten times the 2023 total, reflecting the increasing number of market participants.

⋅ 10-year JGB Futures
Global market participants are actively trading 10-year JGB Futures under the current market environment, and their trading value hit JPY 1,663.7 trillion (USD 11.6 trillion) in 2024, the highest level since 2007.

⋅ JPY Interest Rate Swaps
JSCC-cleared JPY IRS reached the largest-ever clearing volume of JPY 8,272 trillion (USD 57.4 trillion) in 2024.

⋅ OTC Japanese Government Bonds
JSCC-cleared OTC Japanese Government Bonds reached the largest-ever clearing volume of JPY 61,226 trillion (USD 425.18 trillion) in 2024.

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