Tokyo Financial Exchange

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Tokyo Financial Exchange (TFX)
Key people
Nobuyuki Kinoshita (CEO)

The Tokyo Financial Exchange (東京金融取引所, Tōkyō Kin'yū Torihikijo, TFX) is a futures exchange and established in April 1989 under the Financial Futures Trading Law of Japan. It principally deals in financial instrument markets that handles securities as well as market derivatives.



The Tokyo Financial Exchange (TFX) was established under the Financial Futures Trading Law of Japan in April 1989. [1] [2] The TFX was created to be an exchange of for financial originated products. That April, the TFX held a membership organization with the capital supplied by large financial institutions around the world. By June 1989, the Tokyo International Financial Futures Exchange (TIFFE) was trading on three-month Euroyen futures, three-month Eurodollar futures, and Japanese Yen-US Dollar currency futures.

By April 2004, the TFX was demutualized and integrated to support corporate power, [3] and the Financial Futures Trading Law was abolished. In lieu, the Financial Instruments and Exchange Law was revised and the Securities and Exchange Law was enacted in September 2007. [2] With the new law, the TFX adds onto the growth of Japanese financial markets by catering to investors, as well as advocating the development of new lines of products. A TFX committee explored the idea of using a centralized counterpart to clear OTC derivatives, but reached the conclusion that TFX is the most likely institution for clearing OTC derivatives, since ”it is the only exchange in Japan that specializes in trading and clearing financial derivatives”. [4]

Its current CEO is Nobuyuki Kinoshita. [5]


The alliances that the Tokyo Financial Exchange share includes Euronext.liffe, in which the two signed a Memorandum of Understanding (MOU) to develop efficient procedures of both markets. This contract entails that three-month Euroyen futures traded on LIFFE will be transferred to the TFX at the close of LIFFE’s trading day. Another alliance the TFX possesses includes the Shanghai Futures Exchange, established May 27, 2005. Both parties signed a MOU agreement, covering information exchange on regulatory framework and market structure, financial futures products and marketing, and system infrastructure. Both parties nonetheless agree to occasional meetings on the executive and staff level. [1]

See also

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  1. 1 2 "History". Tokyo Financial Exchange Inc. Retrieved 5 December 2019.
  2. 1 2 Laopodis, Nikiforos (2013). Understanding Investments: Theories and Strategies. New York and London: Routledge. pp. 502–503. ISBN   978-0-415-89162-2.
  3. Downes, John; Goodman, Jordan Elliot (2014). Dictionary of Finance and Investment Terms. Hauppauge, NY: Simon and Schuster. ISBN   978-1-4380-9254-6.
  4. Markham, Jerry W. (2012). "Regulating Credit Default Swaps in the Wake of the Subprime Crisis". Current Developments in Monetary and Financial Law. Vol. 6: Restoring Financial Stability: The Legal Response. Washington, D.C.: International Monetary Fund. pp. 321–322. ISBN   978-1-4755-2376-8.
  5. "Tokyo Financial Exchange Inc". Retrieved 2019-12-05.