Japan Exchange Group Announces Revised Tick Size for Index Options Trading
Tokyo, Japan – August 22, 2025 – Japan Exchange Group (JPX) today announced a significant update concerning the tick size (also known as the “call price limit”) for index options trading on the Osaka Exchange (OSE). This revision, set to take effect from September 1, 2025, (based on trading days), aims to enhance market efficiency and liquidity by aligning with evolving market dynamics.
The announcement, titled “[OSE] 指数オプション取引に係る呼値の制限値幅（2025年9月1日（取引日ベース）から適用）” (Tick Size Limits for Index Options Trading on OSE Applicable from September 1, 2025 (Trading Day Basis)), signifies JPX’s ongoing commitment to fostering a robust and investor-friendly derivatives market.
While specific details regarding the exact percentage or monetary value of the revised tick size limits will be communicated through further official announcements and trading rule updates, the core intention behind such adjustments is typically to:
- Improve Price Discovery: Narrower tick sizes can facilitate more granular price movements, allowing for more accurate reflection of underlying market sentiment and a better discovery of fair value for options contracts.
- Increase Liquidity: By making it easier for market participants to enter and exit positions at finer price increments, revised tick sizes can encourage increased trading volume and tighter bid-ask spreads, thereby improving overall market liquidity.
- Enhance Competitiveness: Aligning tick sizes with international standards or best practices can bolster the competitiveness of OSE-listed index options in the global marketplace.
- Adapt to Market Evolution: As options markets mature and trading technologies advance, adjustments to tick sizes become necessary to ensure that the trading mechanisms remain effective and efficient for all participants.
JPX regularly reviews and updates its market rules and regulations to ensure the integrity and efficiency of its trading platforms. This forthcoming change to index options tick sizes reflects this proactive approach. Market participants are encouraged to closely monitor official JPX communications and OSE rulebook updates for the precise specifications of the revised tick size limits.
This proactive measure by Japan Exchange Group underscores its dedication to maintaining a sophisticated and dynamic trading environment, ultimately benefiting all stakeholders in the Japanese derivatives market.
[OSE]指数オプション取引に係る呼値の制限値幅（2025年9月1日（取引日ベース）から適用）
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