Tokyo Financial Exchange
Encyclopedia
is a futures exchange
Futures exchange
A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. These types of...

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 of 1989. 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 of 1989, the TIFFE was trading on three-month Euryen 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, and the Financial Futures Trading Law was abolished. In lieu, the Financial Instruments and Exchange Law was revised with the Securities and Exchange Law was enacted in September 2007. With the new law, the TFX adds on to the growth of Japanese financial markets by catering to investors, as well as advocating the development of new lines of products.

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
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