JAPAN: Partial Revisions to the Business Regulations

Wednesday February 18 2015

Osaka Exchange, Inc. (OSE) will partially revise the Business Regulations. in connection with shortening the period from the last trading day to the day of settlement by physical delivery and payment of JGB futures contracts. 

The revision will focus on the following areas:

• Change in Treatment of Accrued Interests in Settlement by Physical Delivery and Payment

The classification of taxable and non-taxable treatment of accrued interests in settlement by physical delivery and payment and the deduction of tax equivalent in the calculation of taxable accrued interests will be abolished.

• Shortening of Period from Last Trading Day to Day of Settlement by Physical Delivery and Payment

For large JGB futures contracts, the period from the last trading day to the day of settlement by physical delivery and payment will be shortened so that the last trading day of the contract month with the nearest day of settlement by physical delivery and payment falls on the trading day that ends five business days prior to such day of settlement by physical delivery and payment (excluding non-business days).

• Other necessary revisions will be made

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