The underlying indices for the futures contracts are Nikkei Stock average dividend point index, Topix dividend index, and Topix core30 dividend index. TSE will begin calculation and publication of the dividend indices for Topix and Topix Core30 in June, 2010.
Considering the dividend amount paid from Japanese stocks has reached the scale of several trillion yen, the market is likely to develop further. Also, in European exchanges, dividend index futures contracts are gathering considerable attention from investors not only as hedging tools for dividend exposure, but also as a new investment vehicle which differs from current listed derivatives.
By listing dividend index futures contracts, TSE is expected to develop market conditions that encourage the participation of a range of investors, including those who have not traded dividend swaps, as well as provide them with services such as increased transparency and elimination of counterparty risks.
In addition to dividend index futures contracts for Topix and Topix Core 30, TSE is working in cooperation with Nikkei to launch Nikkei Stock Average Dividend Point Index futures contracts.
