TOCOM to Halve Rubber Delivery Unit to 5 Tonnes
Tokyo Commodity Exchange, Inc. (TOCOM) announced August 9that the Exchange would halve the delivery unit of Rubber futures to 5 tonnes in order to enhance the convenience of the market. TOCOM received an approval for this change from the Minister of Economy, Trade and Industry today and will apply this change from the March 2011 contract that will start trading on September 27, 2010.
Currently on the TOCOM Rubber futures market, the delivery unit is 10 tonnes while the contract unit is 5 tonnes. In the spot market, however, the delivery unit is generally smaller, at less than 10 tonnes. Therefore a number of commercial players have requested that the Exchange adjusts its delivery rules to match spot market practices.
TOCOM decided to decrease the delivery unit from 10 tonnes to 5 tonnes in order to meet the needs of commercials and improve the convenience of the market. Today the Exchange received an approval from the Minister of Economy, Trade and Industry to execute the necessary amendments to its Market Rules, which prescribe the delivery unit of each futures contract. Changes in the delivery unit of rubber futures will be applied from September 27, 2010 onward when the March 2011 contract will commence trading.