Osaka Exchange announces execution of compression trades for Nikkei 225 Options
Osaka Exchange (OSE) announces that the compression trades for Nikkei 225 Options (powered by TriOptima AB) were executed during the Night Session on March 27th (Trading date March 28th) .
In this cycle, total of 377 contracts (JPY10.4 billion in notional amount) were traded.
While providing the compression service, OSE will strive to ensure safe and efficient market derivatives operations and enhance the accessibility of its services for market participants.
Compression Trades are J-NET trades which allow market participants to reduce their OSE listed Index Futures and Options positions by executing trades multilaterally between multiple market participants.
Compression needs have been increasing among market participants, especially between Market Makers with multiple issues backed by leverage ratio regulations where the reduction of management costs for open interests is important.
Compression Trade was introduced in October 2021 as a tool to allow market participants to reduce their risk weight asset exposure and meet the regulatory requirements such as leverage ratio requirements.