Osaka Considers Pricing Change to Boost Volatility Index Futures
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Osaka Securities Exchange Co. is considering offering rebates to customers willing to make a market in futures offering a hedge against swings in the Nikkei 225 Stock Average, according to Matthias Rietig, executive advisor to the board.
The exchange plans to offer maker-taker pricing, which pays the suppliers of bids and offers and charges those executing against them, to boost liquidity and volumes for contracts on the Nikkei Stock Average Volatility Index. Futures on the gauge, a measure of expected movement in stocks over the next 30 days, began trading in February. Average daily volume for the contracts, worth 10,000 yen ($128) each, was 40 in June and 44 and July, according to data from the bourse.