The BOJ is at 1.25%, its highest policy rate in 31 years, and markets now expect another hike by December — a much faster pace than the six-month intervals we'd gotten used to. That's why the Tokyo Fi

What happened: The Tokyo Financial Exchange unveiled a new futures contract that lets market participants position for interest-rate changes between Bank of Japan policy meetings, per Reuters. Key numbers: The BOJ last month raised its key policy rate to 1.25%, its highest in 31 years. Markets widely expect another increase by December. Why it matters: The exchange's existing three-month TONA futures have not fully met hedging demand around individual BOJ meetings, and activity weakened. The new contract competes with Japan's larger over-the-counter swap market, where OIS demand is rising.

Tokyo Financial Exchange launches futures to hedge BOJ rate volatility.

Tokyo Financial Exchange launches futures to hedge BOJ rate volatility. — impact context not separately stored; see What changed.