Gold Options - Contract Specifications

Date of Listing

May 17, 2004

Type of Trade

Call Options on Gold Futures
Put Options on Gold Futures

Contract Unit

100 grams / contract

Minimum Price Fluctuation

JPY 1 per gram

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)

Trading Method

Computerized Individual Auction

Contract Months

All even months within a year. (On the day when a New Contract Month is generated, there will be 6 even months starting from the next even month after the month which the said day belongs to)

Last Trading Day

Day session on a business day preceding the Last Trading Day of the current Contract Month of the underlying

First Trading Day of New Contract Month

Day session on a business day following the First Trading Day of a New Contract Month of the underlying

Strike Price Interval

JPY 50 per gram

Listing of Strike Prices

At the commencement of trading, 20 strikes shall be listed.
New strikes will be added to maintain 20 strike prices above and below the strike price nearest to the previous day's settlement price of the underlying asset for the current contract month.

Exercise Period

The next business day of the Last Trading Day (European Type)

Limitation on Exercise

Automatic exercise for in-the-money (cash settlement)
At-the-money and out-of-the-money options may not exercise

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 16:30) 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

As SPAN Margining System started from January 4, 2011, Japan Commodity Clearing House (JCCH) will set its parameters based on historical price fluctuation.
Please see the website of Japan Commodity Clearing House (JCCH) for more details.

Customer Position Limit

No Position Limits. However, limits may be set if the exchange finds it necessary.

Settlement Price

Contract Price of Closing Auction (Ita-awase) of the Day Session (in case there is no such price, theoretical price)

Final Settlement Price

Opening price at the day session of the last trading day of  the current contract month of the standard contract

Assignment of Exercise

Assignment of option contracts starts after 5:00 p.m(JST)

Method of Assignment

TOCOM randomly assigns exercised option contracts to short positions (at the unit of sub account).
Within a broker member, allocation will be made from the oldest outstanding positions with regard to their customer positions (affiliate Members and Member Customer's positions)

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