The finance ministry appears ready toallow Japanese financial institutions to use overseas financial
futures markets, a ministry official said.
    He declined to say when, but banking sources expect
approval as early as April. Banks, securities houses and
insurance companies are expected to become eligible to deal in
deposit, interest rate, bond and stock index futures.
    Ministry officials said they are wary of giving permission
to individuals or corporations because of their relative
inexperience.
    Broking for Japanese residents by financial institutions
would be prohibited as securities exchange laws bar banks from
doing this, the banking sources said.
    Overseas subsidiaries and branches of Japanese banks and
securities houses have already been allowed to use the overseas
futures markets on their own accounts.
    The Finance Ministry Ordinance based on Foreign Exchange
Administration Law will have to be revised to allow local
institutions to join the overseas markets, a ministry official
said.
 Reuter
