Tokyo exchange-listed 10-year rate swaps well recieved, says Tiffe

The Tokyo International Financial Futures Exchange (Tiffe) believes its 10-year interest rate swaps contracts have exceeded expectations during their first month of trading.

A total of 95,943 10-year interest rate swaps contracts were traded on the exchange by the end of May, during which period 18,980 of its new five-year interest rate swaps contracts were traded.

The launch of the new longer-term interest rate products was not only opportunistic – at a time where a lack of volatility in short-term interest rates in the country has led to subdued traded volumes on Tiffe's short-term rates contracts – it also follows the implementation of new trading and clearing systems that support complex combination orders, said a Tiffe official.

The official added that Tiffe is currently reviewing the possibility of launching 20-year interest rate swaps contracts, which could be introduced by August at the earliest.