Restrictions on Derivatives to Be Lifted
The Financial Services Agency is set to liberalize the trading of derivatives. Currently, trading is limited to specific categories like stocks, bonds, and currencies. By next summer, the FSA aims to do away with the current system that requires prior approval for new derivative products and permit trading in vehicles like REIT index futures. The move was taken to speed the development of new investment products that meet investor needs, and thus enhance the competitiveness of Japanese financial markets vis-a-vis its European and U.S. counterparts.