Market Risk of OTC Currency-Related Derivatives
First written in FY2016-Q3. 6 of 32 entries say "Mitigated", first in FY2023. Latest entry: FY2026-H1.
The whole theme swung hardest in 2025: 8 of 19 companies on the "Worse" side.
9 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「Currency; forward exchange transaction; yen purchase (US dollar sale); 718; △7; △7」
Forward exchange contracts for yen purchases and US dollar sales had a contracted amount of ¥718 million and a valuation loss of ¥7 million. The loss decreased from ¥25 million at the end of the same period of the previous year. - FY2025WorsenedAnnual report
「Forward exchange transaction: yen purchase (US dollar sale) 647 — △25 △25」
The contracted amount of forward exchange contracts decreased from ¥3,405 million at the previous fiscal year-end to ¥647 million, while the valuation gain of ¥133 million turned into a valuation loss of ¥25 million. - FY2025-H1MitigatedAnnual report
「Currency; forward exchange transaction; yen purchase (US dollar sale); 2,849; 51; 51」
Forward exchange contracts for yen purchases and US dollar sales had a contracted amount of ¥2,849 million and a valuation gain of ¥51 million. The contracted amount decreased from ¥3,405 million at the previous fiscal year-end, when the valuation gain was ¥133 million. - FY2024MitigatedAnnual report
「Forward exchange transaction: yen purchase (US dollar sale) 3,405 — 133 133」
Forward exchange contracts for yen purchases and US dollar sales had a contracted amount of ¥3,405 million and a valuation gain of ¥133 million, shifting from the ¥1,569 million valuation loss at the previous fiscal year-end to a valuation gain. - FY2024-Q2MitigatedAnnual report
「Second-quarter consolidated accounting period (31 March 2024): underlying asset; transaction type; contract amount (¥ million); fair value (¥ million); valuation gain or loss (¥ million); currency; forward exchange transaction; yen purchase (US dollar sale); 9,510; △216; △216」
The contracted amount of forward exchange contracts for yen purchases and US dollar sales was ¥9,510 million, and the valuation loss was ¥216 million. The loss decreased from ¥1,569 million at the previous fiscal year-end. - FY2024-Q1MitigatedAnnual report
「Forward exchange transaction yen purchase (US dollar sale) 17,539 △120 △120」
Forward exchange contracts for yen purchases and US dollar sales had a contracted amount of ¥17,539 million and a valuation loss of ¥120 million, with the loss decreasing from ¥1,569 million at the previous fiscal year-end. - FY2023MitigatedAnnual report
「Forward exchange transaction: yen purchase (US dollar sale) 16,578 — △1,569 △1,569」
The contracted amount of forward exchange contracts for yen purchases and US dollar sales was ¥16,578 million, and the valuation loss was ¥1,569 million. The loss decreased from ¥3,485 million at the previous fiscal year-end. - FY2023-Q3Decrease in valuation losses on forward exchange contractsAnnual report
「Third-quarter consolidated accounting period (30 June 2023): underlying asset; transaction type; contract amount (¥ million); fair value (¥ million); valuation gain or loss (¥ million); currency; forward exchange transaction; yen purchase (US dollar sale); 17,966; △1,628; △1,628」
Forward exchange contracts for yen purchases and US dollar sales had a contracted amount of ¥17,966 million and a valuation loss of ¥1,628 million. The loss decreased from ¥3,485 million at the previous fiscal year-end. - FY2023-Q2Decrease in valuation gains on forward exchange contractsAnnual report
「Second-quarter consolidated accounting period (31 March 2023): underlying asset; transaction type; contract amount (¥ million); fair value (¥ million); valuation gain or loss (¥ million); currency; forward exchange transaction; yen purchase (US dollar sale); 18,444; 52; 52」
Forward exchange contracts for yen purchases and US dollar sales had a contracted amount of ¥18,444 million and a valuation gain of ¥52 million. The shift from a valuation loss at the previous fiscal year-end to a valuation gain continued, but the gain decreased from ¥338 million in the previous quarter. - FY2023-Q1Shift from valuation losses to valuation gains on forward exchange contractsAnnual report
「First-quarter consolidated accounting period (31 December 2022): underlying asset: currency; transaction type: forward exchange transactions; yen purchase (US dollar sale) 18,986 338 338; yen sale (US dollar purchase) 1,965 △24 △24」
Forward exchange contracts for yen purchases and US dollar sales had a contracted amount of ¥18,986 million and a valuation gain of ¥338 million, shifting from the ¥3,485 million valuation loss at the previous fiscal year-end to a valuation gain. Meanwhile, forward exchange contracts for yen sales and US dollar purchases with a contracted amount of ¥1,965 million generated a valuation loss of ¥24 million. - FY2022Significant increase in valuation losses on forward exchange contractsAnnual report
「Forward exchange transaction: yen purchase (US dollar sale) ¥17,438 million △¥3,485 million △¥3,485 million」
The contracted amount of forward exchange contracts for yen purchases and US dollar sales was ¥17,438 million, and the valuation loss increased to ¥3,485 million. - FY2022-Q3Significant increase in valuation losses on forward exchange contractsAnnual report
「Forward exchange transaction: yen purchase (US dollar sale) 16,087.418 △3,651.362 △3,651.362」
The contracted amount of forward exchange contracts for yen purchases and US dollar sales was ¥16,087 million, and the valuation loss increased to ¥3,651 million. - FY2022-Q2Increase in forward exchange contract amounts and valuation lossesAnnual report
「Forward exchange transaction: yen purchase (US dollar sale) 16,610.771 △1,588.633 △1,588.633」
The contracted amount of forward exchange contracts for yen purchases and US dollar sales increased from ¥9,628 million at the previous fiscal year-end to ¥16,611 million, and the valuation loss was ¥1,589 million. - FY2022-Q1Increase in forward exchange contract amounts and valuation lossesAnnual report
「Forward exchange transaction: yen purchase (US dollar sale) 12,987.457 △539.528 △539.528」
Currency derivatives consisted solely of forward exchange contracts for yen purchases (US dollar sales). The contracted amount increased from ¥9,628 million at the previous fiscal year-end to ¥12,987 million, and the valuation loss was ¥539 million. - FY2021-Q3Discontinuation of option transactions and shift to forward exchange contractsAnnual report
「Forward exchange transaction: yen purchase (US dollar sale) ¥13,505.206 million」
The currency option transactions recorded at the previous fiscal year-end disappeared from the list of derivatives at the end of the current quarter, leaving only ¥13,505 million in forward exchange contracts for yen purchases (US dollar sales). - FY2021-Q2Significant decrease in option contract amounts and increase in forward exchange contractsAnnual report
「Option transactions: written ¥104.565 million; purchased ¥104.565 million. Forward exchange transactions: yen purchase (US dollar sale) ¥9,213.062 million; US dollar sale (euro purchase) ¥90.869 million」
The contracted amount of currency options decreased significantly from ¥18,590 million at the previous fiscal year-end to ¥145 million, while forward exchange contracts for yen purchases (US dollar sales) amounted to ¥9,213 million. - FY2021-Q1Decrease in option contract amounts and increase in forward exchange contractsAnnual report
「Derivative transactions involving currency as the underlying asset have become important to the operation of the business, and significant fluctuations have been observed compared with the end of the previous consolidated fiscal year.」
The contracted amount of currency options decreased from ¥18,590 million at the previous fiscal year-end to ¥17,499 million, while forward exchange contracts for yen purchases (US dollar sales) increased from ¥3,403 million to ¥5,899 million, and forward exchange contracts for yen sales (US dollar purchases) were also recorded. - FY2020Decrease in option contract amounts and increase in forward exchange contractsAnnual report
「Derivative transactions involving currency as the underlying asset have become important to the operation of the business, and significant fluctuations have been observed compared with the end of the previous consolidated fiscal year.」
The contracted amount of currency options decreased from ¥28,675 million at the previous fiscal year-end to ¥18,590 million, while forward exchange contracts for US dollar sales and yen purchases and US dollar sales and euro purchases were recorded. - FY2020-Q3Decrease in option contract amounts and change in the composition of forward exchange contractsAnnual report
「Derivative transactions involving currency as the underlying asset have become important to the operation of the business, and significant fluctuations have been observed compared with the end of the previous consolidated fiscal year.」
The contracted amount of currency options decreased from ¥28,675 million at the previous fiscal year-end to ¥20,324 million, while forward exchange contracts included transactions involving US dollars and euros, and their details and valuation gains or losses changed. - FY2020-Q2Decrease in option contract amounts and change in the composition of forward exchange contractsAnnual report
「Derivative transactions involving currency as the underlying asset have become important to the operation of the business, and significant fluctuations have been observed compared with the end of the previous consolidated fiscal year.」
The contracted amount of currency options decreased from ¥28,675 million at the previous fiscal year-end to ¥22,279 million, while forward exchange contracts included transactions such as US dollar sales and yen purchases, and their details and valuation gains or losses changed. - FY2020-Q1Decrease in option contract amounts and change in the composition of forward exchange contractsAnnual report
「Derivative transactions involving currency as the underlying asset have become important to the operation of the business, and significant fluctuations have been observed compared with the end of the previous consolidated fiscal year.」
The contracted amount of currency options decreased from ¥28,675 million at the previous fiscal year-end to ¥25,623 million. Forward exchange contracts included transactions involving US dollars and euros, and their details and valuation gains or losses changed. - FY2019-Q3Decrease in option contract amounts and change in the composition of forward exchange contractsAnnual report
「Derivative transactions involving currency as the underlying asset have become important to the operation of the business, and significant fluctuations have been observed compared with the end of the previous consolidated fiscal year.」
The contracted amount of currency options decreased from ¥45,838 million at the previous fiscal year-end to ¥32,224 million. Among forward exchange contracts, yen purchases (US dollar sales) decreased, while yen sales (US dollar purchases) increased. - FY2019-Q2Further decrease in option contract amounts and change in the composition of forward exchange contractsAnnual report
「Derivative transactions involving currency as the underlying asset have become important to the operation of the business, and significant fluctuations have been observed compared with the end of the previous consolidated fiscal year.」
The contracted amount of currency options decreased from ¥45,838 million at the previous fiscal year-end to ¥35,888 million. Among forward exchange contracts, yen purchases (US dollar sales) decreased, while yen sales (US dollar purchases) increased. - FY2019-Q1Decrease in option contract amounts and increase in forward exchange contractsAnnual report
「Derivative transactions involving currency as the underlying asset have become important to the operation of the business, and significant fluctuations have been observed compared with the end of the previous consolidated fiscal year.」
The contracted amount of currency options decreased from ¥45,838 million at the previous fiscal year-end to ¥44,020 million, while the contracted amount of forward exchange contracts increased and their details and valuation gains or losses changed. - FY2018Increase in the contracted amount of derivativesAnnual report
「Derivative transactions involving currency as the underlying asset have become important to the operation of the business, and significant fluctuations have been observed compared with the end of the previous consolidated fiscal year.」
The contracted amount of currency options increased from ¥44,369 million at the previous fiscal year-end to ¥45,838 million, while valuation gains or losses, including those on forward exchange contracts, also changed. - FY2018-Q3Significant fluctuations in derivative transactionsAnnual report
「Derivative transactions involving currency as the underlying asset have become important to the operation of the business, and significant fluctuations have been observed compared with the end of the previous consolidated fiscal year.」
The contracted amount of currency options, both written and purchased, changed from ¥44,369 million at the previous fiscal year-end to ¥43,506 million, while the details and valuation gains or losses on forward exchange contracts also changed. - FY2018-Q2Significant fluctuations in derivative transactionsAnnual report
「Derivative transactions involving currency as the underlying asset have become important to the operation of the business, and significant fluctuations have been observed compared with the end of the previous consolidated fiscal year.」
The contracted amount of currency options, both written and purchased, decreased from ¥44,369 million at the previous fiscal year-end to ¥42,485 million, while the details and valuation gains or losses on forward exchange contracts also changed. The disclosure of significant changes has continued. - FY2018-Q1Significant fluctuations in derivative transactionsAnnual report
「Derivative transactions involving currency as the underlying asset have become important to the operation of the business, and significant fluctuations have been observed compared with the end of the previous consolidated fiscal year.」
The contract amount of currency options increased from ¥44,306.923 million at the end of the previous fiscal year to ¥44,941.707 million, and the contract amount of foreign exchange forward contracts also fluctuated. The disclosure of significant fluctuations continues. - FY2017RestatedAnnual report
「The Group avoids assuming market risk by entering into derivative transaction agreements with customers and entering into similar derivative transactions with counterparties to its hedging transactions.」
For over-the-counter currency derivatives, the Group continues to offset customer transactions through hedging transactions with financial institutions. - FY2017-Q3Significant fluctuations in derivative transactionsAnnual report
「Derivative transactions involving currency as the underlying asset have become important to the operation of the business, and significant fluctuations have been observed compared with the end of the previous consolidated fiscal year.」
The contract amount of currency options decreased from ¥46.29 billion at the end of the previous fiscal year to ¥42.90 billion, and valuation gains and losses also fluctuated. The mechanism for avoiding market risk through hedging transactions continues to be described. - FY2016RestatedAnnual report
「The Group avoids assuming market risk by entering into derivative transaction agreements with customers and entering into similar derivative transaction agreements with counterparties to its hedging transactions.」
For over-the-counter currency derivatives, the Group continues to offset customer transactions through hedging transactions with financial institutions. - FY2016-Q3First statedAnnual report
「When providing over-the-counter currency derivative products, the Group enters into derivative transaction agreements with financial institutions as hedging transactions when entering into derivative transaction agreements with customers, in order to avoid assuming the market risk of derivative transactions.」
The mechanism for avoiding market risk through hedging transactions is described.