- What Micro Nikkei futures are listed for trading beginning October 28, 2024?
- Why is CME Group listing these products?
- What are the differences between the currently listed Nikkei products and the new Micro Nikkei products?
Product details
- What are the contract specifications?
- What are the codes for these products?
- How many contracts will be listed at a given time?
- How are the daily settlement price Micro Nikkei futures determined?
- How are final settlement prices of the futures determined?
- Are these futures contracts eligible for block trading or BTIC?
- What are the fees for Micro Nikkei contracts?
- Are these products included in the CME Group Equity product volume discounts?
- What are the margin requirements for Micro Nikkei futures?
- Are Micro Nikkei futures products fungible with their standard size Nikkei counterparts? Can they be offset?
Product details
1. What Micro Nikkei futures are listed for trading beginning October 28, 2024?
2. Why is CME Group listing these products?
CME Group has offered liquid dollar- and yen-denominated Nikkei futures on Globex since 2004, helping investors gain exposure to the benchmark Japan equity index. Since the Nikkei 225 Index has reached record highs, there have been demands for smaller-sized contracts as the notional values of the contracts have significantly increased. To make Nikkei products more accessible to market participants, we have launched Micro Nikkei futures, featuring multipliers 1/10 the size of the standard Nikkei futures to help participants manage the risk with more granularity in a cost-efficient way.
3. What are the differences between the currently listed Nikkei products and the new Micro Nikkei products?
| Products | Product Code | Multiplier | Tick Size | Notional Value of 1 Contract (as of Sep 23, 2024) |
|---|---|---|---|---|
| Nikkei (USD) futures | NK | $5 | 5 index points ($25) | $190,000 |
| Micro Nikkei (USD) futures | MNK | $0.50 | 5 index points ($2.5) | $19,000 |
| Nikkei (JPY) futures | NI | ¥500 | 5 index points (¥2500) | ¥19,000,000 |
| Micro Nikkei (JPY) futures | MNI | ¥50 | 5 index points (¥250) | ¥1,900,000 |
Product details
4. What are the contract specifications?
| Contract Title | Micro Nikkei futures (USD) | Micro Nikkei futures (JPY) | |
|---|---|---|---|
| Contract Unit | USD 0.5 | JPY 50 | |
| CME Globex and CME ClearPort Codes | MNK | MNI | |
| Rulebook Chapter | CME 352C | CME 352D | |
| Price Quotation | U.S. dollars and cents per index point | yen per index point | |
| Minimum Price Increment / Financial Equivalent | 5 index points = USD 2.50 | 5 index points = JPY 250 | |
| Final Settle Tick | 0.01 | 0.01 | |
| Trading and Clearing Hours |
CME Globex Pre-Open: Sunday 4:00 p.m. – 5:00 p.m. Central Time (CT) Monday – Thursday 4:45 p.m. – 5:00 p.m. Eastern Time (ET) CME Globex: Sunday 5:00 p.m. – Friday 4:00 p.m. CT with a daily maintenance period from 4:00 p.m. – 5:00 p.m. CT CME ClearPort: Sunday 5:00 p.m. – Friday 5:45 p.m. CT with no reporting Monday – Thursday 5:45 p.m. – 6:00 p.m. CT |
||
| Underlying Price Index | Nikkei 225 Index | ||
| Listing Schedule | Quarterly contracts (Mar, Jun, Sep, Dec) listed for nearest 2 consecutive quarters | ||
| Initial Listings | Dec 2024, Mar 2025. | ||
| Termination of Trading | Trading terminates at 4:00 p.m. CT on the Thursday prior to the second Friday of the contract month. If LTD is a holiday in Japan, LTD moves to the preceding business day. | ||
| Settlement Procedure | Financially settled | ||
| Block Eligibility | No | ||
5. What are the codes for these products?
| Index Futures Contracts | Underlying Index (Bloomberg) | CME Globex | Bloomberg |
|---|---|---|---|
| Micro Nikkei futures (USD) | NKY | MNK | KMY |
| Micro Nikkei futures (JPY) | NKY | MNI | IMY |
6. How many contracts will be listed at a given time?
CME Group will list the nearest two quarterly months in the March quarterly cycle (Mar, Jun, Sep, Dec) for each Micro Nikkei futures (dollar) and Micro Nikkei futures (yen).
7. How are the daily settlement price Micro Nikkei futures determined?
Daily settlement for Micro Nikkei futures is based on the 30-second volume-weighted average price (VWAP) of Globex trades between 3:59:30 p.m. and 4:00:00 p.m. ET of their corresponding standard size Nikkei futures counterpart.
8. How are final settlement prices of the futures determined?
Micro Nikkei futures will have the same SOQ value as the corresponding standard-size Nikkei futures contract on the final settlement day.
Micro Nikkei futures expire on the second Thursday of the contract month. The final settlement prices are based on the Special Opening Quotation (SOQ) of Nikkei 225 Index referencing the opening values of constituent stocks at Tokyo Stock Exchange on the business day following the last trading day. The final settlement price on all cash settlements will be rounded to the 1/100 of an index point.
9. Are these futures contracts eligible for block trading or BTIC?
No, Micro Nikkei futures contracts will not be block or BTIC trading eligible.
10. What are the fees for Micro Nikkei contracts?
Micro Nikkei products will be part of the Nikkei futures suite according to the CME Fee Schedule.
11. Are these products included in the CME Group Equity product volume discounts?
No. Micro Nikkei futures volume will not count towards the current volume-based fee discounts available to members. However, CME Group does intend to provide a market maker program to eligible participants that may feature fee rebates, pending regulatory review.
12. What are the margin requirements for Micro Nikkei futures?
Margins are based on current market conditions and, thus, are subject to change. Please use the below links to find the latest information on margins.
13. Are Micro Nikkei futures products fungible with their standard size Nikkei counterparts? Can they be offset?
Yes, Micro Nikkei futures are offset eligible versus their Standard size counterparts Nikkei futures at 10:1 ratio. This can only be applied to offsetting positions. Requests can be made by your clearing broker directly to the CME Clearing House.
Additional information
14. Under which DCM will these contracts be listed?
CME. Both Micro Nikkei (USD) and Micro Nikkei (JPY) futures will remain under the same DCM as their standard-size Nikkei products.
15. How can I see prices for Micro Nikkei futures?
Delayed quotes will be available online on the CME Group website. You can also access quotes through major quote vendors.
16. How can I get access to CME Globex?
To access CME Globex, you must have a relationship with a CME Clearing Member Firm.
Find out more about connecting to CME Globex.
17. Where can I find more information on Micro Nikkei futures products at CME Group?
Visit cmegroup.com/Nikkei for the latest information.
All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
