The Tokyo Financial Exchange (TFX) has unveiled a wide range of initiatives, including several short-term goals it is eyeing over the next five years, per a company statement.
The futures exchange was looking to maintain a fresh retail focus, potentially starting as early as next year. This includes an expanded contracts-for-difference (CFDs) offering as well as early Equity Index Daily Futures.
More specifically, TFX has rolled out plans for Click Kabu 365 with Reset Day in a bid to help attract overseas investors. Furthermore, TFX is also looking to explore new products such as ETFs linked to gold, REIT, and others as part of a bid to fulfill demand.
Investors have consistently opted for fair and reliable price market benchmarks, eligible market makers, and the satisfaction of fluid trading needs – all areas TFX is looking to address by 2025.
In terms of generating new clients, TFX is looking elsewhere in Asia to check off this box.
As such, the exchange is looking to engage in an active marketing campaign to attract new customer flow from both Taiwan and Hong Kong when local brokers become eligible.
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These regions stand as the largest for potential growth, as identified by TFX. Additionally, the group has embarked on a plan to kindle new business creation.
This includes developing both FX and CFD market-linked products, as part of a bolstered FX offering. Additional emphasis will be paid to foreign currency deposit and investment trusts.
Finally, TFX is also looking to other strategies across segments, namely in terms of the wholesale business and its clearing operations.
While the logistics for a new clearing business are sizable, TFX will be looking to investigate the feasibility of a new operation, as well as NFDs, currency swaps, options, and more.
This entire agenda is to reach fruition over the next five years with TFX aiming to formally kick off these new initiatives by 2022.
Earlier this week, TFX published its trading volumes for the final month of 2019, revealing a healthy uptick in foreign exchange (forex) trading on a month-on-month comparison. Namely, the total trading volume of FX daily futures contracts, which are traded through Click 365, was 1,669,741 contracts, with an average daily traded volume (ADV) of 75,897 contracts.