Osaka opens Nikkei volatility offering to US customers

The Osaka Securities Exchange has widened the investor base of its Nikkei volatility index futures after gaining permission from US watchdog, the Commodity Futures Trading Commission, to market the instruments to US citizens.

The Osaka Securities Exchange (OSE) has widened the investor base of its Nikkei volatility index futures after gaining permission from US watchdog, the Commodity Futures Trading Commission (CFTC), to market the instruments to US citizens.

From this week, the new Nikkei Stock Average Volatility Index Futures (Nikkei 225 VI Futures), launched 27 February, can be offered or sold to US persons.

The Nikkei indices track the performance of Japan’s top companies in stocks and futures and the volatility index measures the market’s expectation of movements over the next 30-day period.

Last month, the OSE postponed the launch of its Dow Jones Industrial Average Futures, originally due to be rolled out 27 February. A new release date is yet to be confirmed.

The OSE is working towards a January 2013 merger with the equities-focused Tokyo Securities Exchange (TSE). The merger of the two bourses is set to form the core of a national, multi-asset class exchange which will attract greater international participation and help fend off the advances of alternate venues such as proprietary trading systems, which have been seeking to take market share from the primary bourses.

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