Iwanaga Moriyuki – OSE President & CEO Offers Update on Exchange Initiatives

Mar 3, 2022

John Lothian

John Lothian

Executive Chairman and CEO

Veteran Exchange Executive Gives Exclusive Video Interview to JLN

Iwanaga Moriyuki, President and CEO of the Osaka Exchange (OSE), updated John Lothian News about several important exchange initiatives at Japan Exchange Group (JPX) in an interview over Zoom last week. He spoke with John Lothian from Tokyo, with an image of the Osaka Exchange projected behind him, and gave JLN an exclusive interview.

Iwanaga spoke about the new derivatives trading platform for Tokyo Commodity Exchange (TOCOM) and OSE, J-GATE 3.0, launched last September and how that has improved the markets. 

He told how active market participants, including domestic retail traders, have asked for better access to JPX markets during market holidays. Japan has the “highest number of market holidays in the world,” he said. Starting in September, OSE will introduce holiday trading to its derivatives market. 

Iwanaga also shared an update on the restructuring of the Tokyo Stock Exchange (TSE) cash markets into three new segments. Instead of the Market of the high-growth and emerging stocks (Mothers) and JASDAQ with two independent emerging boards, the new segments are Prime, Standard and Growth. Iwanaga said he believes this will have a boosting effect on the whole market and the Nikkei 225 and the JPX Nikkei 400.

Interest rate products were also discussed in the interview, with Iwanaga noting there is increased interest in the 20-year JGB futures because of the rise of inflation. The CME has recently announced its own 20-year U.S. Treasury Bond futures that start this week, so this seems to be sweet spot on the interest rate curve.

TOCOM is introducing liquefied natural gas (LNG) futures in April after adding electricity in September of 2019. Iwanaga said, “Judging from Japan’s position in the LNG space, it is the natural extension of our market to also host the global derivatives benchmark in that space.” 

“Enriching our energy market’s liquidity and improved domestic price discovery and price formation onshore will create more efficient hedging tools, which should in turn contribute to the overall efficiency of markets and strengthen the Japanese industry as a whole,” he said.

Also, the market integration of TOCOM and OSE has strengthened market depth and the client pool for both markets. JPX wants to further grow this group by offering smaller sized contracts that are becoming so popular around the world. He said JPX also wants to throw its ring into the newly formed carbon market that will be established in Japan. 

 

Hedge Fund Talent Schools Are Looking for the Perfect Trader

Hedge Fund Talent Schools Are Looking for the Perfect Trader

First Read Hits & Takes John Lothian & JLN Staff FIA's IDX concluded last night on a high note with the gala dinner in support of the Futures For Kids charity and the end of Rama Pillai's Kilt Challenge. The dinner gala raised a total of 150K British pounds, including...

We visit more than 100 financial news websites daily (Would YOU do that?)

The Spread

Todays  Options Newsletter

Now Read This

A Milestone in Indexing: FTSE Russell Celebrates 40 Years of the Russell US Indexes during Russell Reconstitution

A Milestone in Indexing: FTSE Russell Celebrates 40 Years of the Russell US Indexes during Russell Reconstitution

Elmhurst, IL (JLN) -In a recent roundtable, we spoke with Catherine Yoshimoto, director of product management at FTSE Russell; Paul Woolman, Managing Director – Global Head of Equity Index Products from CME Group; and Rick Rosenthal, Managing Director – Global Head of Equity Index Products at Cboe Global Markets. They shared insights on the significance of this year’s Russell Reconstitution and its implications for market participants.

Connamara CEO Prioritizes Regulatory Compliance for Exchange Clients

Connamara CEO Prioritizes Regulatory Compliance for Exchange Clients

Boca Raton, FL (JLN) – Jim Downs, CEO of Connamara Technologies, a provider of exchange infrastructure technology, emphasizes the importance of regulatory compliance for clients during an interview at the FIA’s International Futures Industry Conference in Boca Raton, FL. Connamara’s customer base consists of 40% regulated entities in derivatives and equities markets, with the remaining clients ranging from crypto infrastructures in the US to an equity platform in Brazil, Downs said. Downs highlighted that even unregulated clients aim to operate as if they were regulated, maintaining rulebooks and prioritizing brand reputation, he said.

Fintech Banker Sees Pockets of Progress Amid Uneven Recovery

Fintech Banker Sees Pockets of Progress Amid Uneven Recovery

Boca Raton, FL (JLN) – Dushyant Shahrawat, a managing director at the boutique investment bank Rosenblatt Securities, sees an uneven recovery playing out in financial markets and technology hubs around the world. In an interview at the FIA International Futures Industry Conference in Boca Raton, Fla., Shahrawat said the public markets have regained momentum, even as the Federal Reserve signals continued interest-rate increases. “The public market seems to be recovering very well,” he said.

Baton Systems CEO Outlines Expansion, Future of Collateral Sector

Baton Systems CEO Outlines Expansion, Future of Collateral Sector

BOCA RATON, FL (JLN) – Arjun Jayaram, founder and CEO of Baton Systems, discussed the company’s expansion plans and the future of the collateral sector in an interview at the FIA’s International Futures Industry Conference. Jayaram said Baton is seeing increased demand to extend its core collateral products beyond cleared derivatives markets into uncleared derivatives and the broader collateral ecosystem. This includes providing real-time asset inventory visibility, eligibility mapping across venues, and facilitating mobilization of collateral assets.