Futures based on the Russell/Nomura Prime Index are scheduled to begin trading on the Osaka Securities Exchange on April 25, pending approval by Japan's Financial Services Agency. The date was set after the OSE approved trading procedures today, according to a news release from the exchange, Russell Investment Group and Nomura Securities. The index measures the performance of Japan's top 1,000 stocks on a float-adjusted market-capitalization basis.
According to the OSE, the exchange is asking the U.S. Commodity Futures Trading Commission to issue a "no-action letter" to allow U.S. investors to use the futures.
Last July, the OSE, Russell and Nomura announced they had agreed to develop a futures issue based on the index.
"This new derivatives trading capability will provide institutional investors who invest in Japanese equity markets a strong model for passive investment and hedge strategies," said Lori Richards, senior product manager for Russell indexes.