3-Month TONA Futures | Japan Exchange Group (2024)

FAQs

What is a three month tona futures? ›

Three-month TONA futures designates, as underlying asset, an interest rate per annum that is calculated by compounding daily TONA during the Three months' “Reference Quarter”.

TONA is calculated from transactions in the Japanese yen unsecured overnight money market and is the volume weighted average of the rates of all transactions settled on the same day as the trade date and maturing the following business day.

The Tokyo Overnight Average Rate (TONAR) is the risk-free unsecured interbank overnight interest rate for the Japanese Yen – it's also known as TONA. It was created in 2016 in the move to risk-free reference rates. TONAR is the replacement for LIBOR, which is expected to be completely phased out by June 2023.

Futures markets are open virtually 24 hours a day, six days a week; however, each product has its own unique trading hours. Next, each contract specifies the tick size. Tick size is the minimum price increment a particular contract can fluctuate. Tick sizes and values vary from contract to contract.

A futures contract's value is typically its contract size multiplied by the current price. For example, if gold futures are trading at $1,900 an ounce, one futures contract representing 100 troy ounces would be valued at $190,000 ($1,900 x 100 = $190,000).

rate=dxdy=x' , which means the derivative of x . So, to calculate a rate, you must have two values changing, you fix a time, or any equivalent measure, and calculate their changes, then divide them. Your rate will tell you how the numerator variable changes with the denominator variable.

The US dollar's role continues to be central to the functioning of the international financial system. The Bank of International Settlements estimates that the US dollar is involved in almost 90 per cent of foreign exchange transactions and accounts for 85 per cent of transactions in spot, forward and swap markets.

How do foreign exchange swaps work? ›

A foreign exchange swap (also known as an FX swap) is an agreement to simultaneously borrow one currency and lend another at an initial date, then exchanging the amounts at maturity. It is useful for risk-free lending, as the swapped amounts are used as collateral for repayment.

Since U.S. economic growth is less dependent on the rest of the world, this increases the attractiveness of dollar-denominated assets for foreign investors. That, in turn, bolsters the dollar's dominance of the world's economy, further pushing up the currency's value.

A Quarterly futures contract (QFC) refers to an agreement to purchase or sell the underlying asset at a fixed price at a particular time (delivery date) in the future. Other than perpetual futures contracts, quarterly futures contracts can expire.

Financial contracts traded on US futures exchanges (such as bonds, short-term interest rates, foreign exchange, and US stock indexes) typically expire quarterly, specifically in March, June, September, and December.

Quarterly futures contracts adhere to specific settlement dates at the end of each quarter, providing structured trading periods. In contrast, perpetual futures contracts offer continuous trading without expiration dates and use funding rates to stabilize prices.

Many futures contracts expire on the third Friday of the month, but contracts do vary so check the contract specifications of any and all contracts before trading them. For example, it is January, and April contracts are trading at $55.