New way to tap into gold investment

Since listing in 1982, Gold has always been one of the most actively traded commodities on the TOCOM market. In 2007, the Gold Mini contract was added to the TOCOM Gold market to serve need of the investors with lower risk tolerance. TOCOM started offering Gold Rolling Spot Futures, a new type of gold contract, from May 7, 2015. It has no maturity date and positions are rolled from one trading day to the next. Differentiating from TOCOM’s traditional gold contracts, Gold Rolling Spot was designed to meet the needs of investors who trade similar foreign exchange and financial products. It has grown quickly to be one of the top-listed products at TOCOM.

Theoretical Gold Spot Price

Gold Rolling Spot prices, which represent the gold spot prices, are based on theoretical spot prices calculated from TOCOM’s Gold Standard contract. The theoretical spot price is published in five-minute intervals on the TOCOM website.

Gold Rolling Spot Futures Price / Volume Trends

Benefits of Gold Rolling Spot

No maturity Since there is no contract expiration, positions can remain open indefinitely, enabling traders greater flexibility.
Cross margin savings Those offsetting risk with TOCOM’s Gold Standard (1kg) or Gold Mini (100g) futures may enjoy significant margin reduction.
Covers Asia, Europe and U.S. trading Gold Rolling Spot Futures contract is listed on TOCOM’s trading system, which is available from trading hubs around the world for nearly 18 hours each business day.

Price Information

TOCOM Product Code:
18
Reuters Contract Detail:
JAUCFD=
Bloomberg Ticker:
JGDDAILY

Gold Rolling Spot Futures Contract Specifications

Date of Listing May 7, 2015
Type of Trade Cash-settled Futures Transaction (Rolling Spot Futures)
Standard Gold of minimum 99.99% fineness
Trading Method Computerized Individual Auction
Settlement Price Theoretical spot price
Underlying Instrument Theoretical spot price* of gold with minimum 99.99 % fineness
* Theoretical spot price is calculated as follows:
The forward rate is calculated using the settlement prices of the 1st and the 6th months of the Gold Standard. Then, taking the number of days remaining until the expiry into consideration, the theoretical price is calculated from the settlement price of the 1st month, using the forward rate.

On the last trading day of the 1st month, the forward rate will be calculated based on the settlement prices of the 2nd and the 6th months.
Contract Term One Clearing Period (Rolling Spot Futures)
Rolling Spot Futures Transaction Rolling Spot Futures is a type of transaction which is established during the session in a given Clearing Period or as a result of the roll-over process executed at the close of the session for the Clearing Period immediately preceding said given Clearing Period, and closed through an offsetting resale or repurchase or as a result of the roll-over process executed at the close of session in the Clearing Period in which the position was established.
Trading Hours Day Session Opening Call Auction (Ita-awase): 8:45 a.m. (JST)
Continuous Trading (Zaraba): 8:45 a.m. to 3:10 p.m. (JST)
Closing Call Auction (Ita-awase): 3:15 p.m. (JST)
Night Session Opening Call Auction (Ita-awase) : 4:30 p.m. (JST)
Continuous Trading (Zaraba) : 4:30 p.m. to 5:25 a.m. of the following morning (JST)
Closing Call Auction (Ita-awase) : 5:30 a.m. of the following morning (JST)
Contract Unit 100 grams (approximately 3.215 troy ounces)
Price Increment JPY 1 per gram (tick value: JPY 100)
Circuit Breaker Trigger Level
(Static Circuit Breaker (SCB) Level)
The SCB trigger level is to be set everyday at the start of a new clearing period (i.e.the start of a night session at 4:30 p.m. (JST)) and is based on the settlement price of the previous clearing period (or the settlement price of the preceding contract month, in case of a new contract month)
Immediately Executable Price Range (Dynamic Circuit Breaker (DCB) Level) The DCB trigger level is to be set based on DCB Reference Price (the last traded price, in principle)
Margin The SPAN Margining System applies.
Position Limits Position limits are not applicable; however, if it is deemed necessary by the Exchange, a limit on positions will be established.

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