JAPAN LIKELY TO ALLOW USE OF OVERSEAS FUTURES
The Finance Ministry is likely to allow
Japanese financial institutions here to use overseas financial
futures market from next month, bond market sources said.
    A senior ministry official declined to give an exact
timing, but said he expects removal of the ban on trading in
overseas financial futures as soon as possible.
    The domestic call for participation in overseas markets to
hedge foreign securities holding risks was reinforced by the
launch of a night trading session by the Chicago Board of Trade
from April 30. The session covers morning trading hours in
Tokyo.
    Resident financial institutions are currently not allowed
to participate in foreign financial futures markets, although
their overseas branches may.
    The newly eligible institutions are expected to be
securities houses, banks, life insurance companies and
investment trusts, the market sources said. But the ministry is
likely to prohibit broking business by those institutions and
by individuals, the sources said.
    In addition corporate investors are expected to be barred
initially because of their relative lack of experience.
 REUTER
