The Tokyo Stock Exchange (TSE) is to reduce the minimum tick size for single stock options in Q4 2011 from 0.5 to 0.1 yen.
The move is part of a drive to attract retail investors to the platform, TSE derivatives department spokesman Kensuki Tsuji told theTRADEnews.com. He also confirmed that the TSE is planning to migrate its futures trading platform to the Tdex+ options platform in autumn, 2011. The TSE will then introduce a similar reduction of tick sizes from 0.5 to 0.1 yen on that platform.
The exchange ultimately plans to replace Tdex+ with a new low-latency platform from NYSE Technologies, the IT arm of exchange group NYSE Euronext. The new platform will be based on Tdex+, and is scheduled for Q3 2011.
Atsushi Saito, CEO and president at the TSE, has previously commented that the exchange hopes in the long term to recover previous levels of trading activity on its futures market, which suffered decline during the financial crisis.
The TSE will be accepting public comments on the change to single stock option tick sizes until 24 March 2011.