The Tokyo Financial Exchange (TFX) is launching the first licensed Nasdaq-100 contract for difference (CFD) in Japan, empowering local investors with more accessibility to global investment opportunities.
A Key Player in the Local Market
TFX was initially started in 1989 as Tokyo Financial Futures Exchange (TIFFE), providing on-exchange transactions of interest rate futures. The market thrived with participants from all over the world, building the foundation of a solid network with significant global players.
Looking to become a more comprehensive financial exchange, TIFFE evolved into TFX. Using its experience and expertise in futures and the global connection, TFX launched new markets: FX daily futures contracts (FX) under “Click 365” and equity index daily futures contracts (CFDs) through “Click Kabu 365.” These markets made TFX a valuable financial infrastructure with a variety of products attractive to a broad range of customers, from institutional investors to individual traders .
With over 30 years of experience, TFX is constantly innovating, supporting various critical market functions, from trade execution to clearing. Notably, the exchange recently expanded its offerings to include new field FX clearing, which assumes cover transactions of OTC FX, seeking to enhance stability to the FX market in Japan.
Responding to Investors’ Needs
As TFX’s FX solidified its position within the FX market in Japan with exchange-native transparency, stability and fairness, the exchange launched CFDs in 2010 as one of the groundbreakers. As a result, the market size has grown to 484,000 accounts and 153 billion JPY in trading volume per day in the last decade and has gained a nearly 50% share of the entire CFD market in Japan. Today, TFX’s CFD is still showing signs of more growth.
Committed to responding to the investors’ needs and ensuring local retail investors have an opportunity to tap into the potential of global markets, TFX is expanding its product offerings. Its long-awaited new product for the Nasdaq-100 index goes live in February 2022, making TFX the first and only Nasdaq-100 licensee in Japan for CFD.
The Nasdaq-100 includes the 100 largest non-financial companies listed on Nasdaq, capturing companies with a legacy of using innovation to create competitive advantages that disrupt their respective markets across multiple sectors and industries. The index, therefore, offers investors in Japan global opportunities to be tuned in to the potential of the world’s most innovative companies.
“We are delighted to launch Nasdaq-100 product in our Click Kabu 365 family with a blessing and full support from Nasdaq. We believe adding Nasdaq-100 enhances the convenience and provides more advantages to our investors,” said Nobuyuki Kinoshita, CEO of TFX.
Nasdaq-100® is a registered trademark of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by TFX. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the product(s).
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