Japan Exchange Group (JPX) and Korea Exchange (KRX) have signed a letter of intent to list won-denominated Topix options on the Korean exchange. Both exchanges are working closely to begin the listing in 2014.
The futures and options linked to Topix have been used actively for hedging market risk against Japanese stock portfolios.
"This letter of intent is intended to further deepen our continuous relationship and start working on a detailed study of listing Topix options on KRX," said Atsushi Saito (pictured), CEO of JPX. "Building up close partnerships between two leading exchanges in Asia will contribute to the further development of capital markets in both countries."
According to the SRP database, so far this year two products linked to a Topix exchange-traded fund have been marketed by Nomura Securities in Japan with a sales volume of $414m.
JPX was launched in January, following the merger between Tokyo Stock Exchange (TSE) and derivatives exchange Osaka Securities Exchange (OSE). JPX had a $3.8tr market capitalisation in February.