Japan Exchanges Eye Call-Option ETFs to Attract Global Investors

Japan’s two major exchanges are looking to expand exchange-traded fund products including ones that offer covered calls to attract new investors.

Tokyo Stock Exchange Inc. and Osaka Exchange Inc. are considering offering single-stock call overwriting ETFs, new OSE President Akira Tagaya said in a group interview. The product, which generates income for investors by selling call options while holding an underlying position in the stock, could broaden access to derivatives for a wider range of investors, he said. The two bourses are currently gauging demand for the ETF.