Modifications in Oil Market Contracts

2007.9.19

The Board of Directors decided at the meeting held today (September 19, 2007) to implement the following modifications on and after October 1st, 2007.

1) Price Limit expansion

Daily Price Fluctuation Limits are now to be determined based on the largest market price movement within a certain period of time and are to be set at a level where the probability that they will be reached is very low. Under this new rule, the Price Limit will initially be at around JPY 2,700, up from the current Price Limit of JPY 1,800.

Consequently, the Exceptional Measures for Price Limits are to be abolished. Please click here for details.

2) Position Limit largely eased

a) Customer Position Limit

For the Gasoline and Kerosene Markets, the Position Limit applicable to commercial customers is to be expanded as follows:

COMMERCIAL

CUSTOMERS

Current

contract month

2nd

contract month

Other

contract months

Current Rule

400

800

2,400 for each month

New Rule

2,000

3,000

5,000 for each month

Please note that the Position Limit applicable to non-commercial customers is to remain the same.

NON-COMMERCIAL

CUSTOMERS

Current

contract month

2nd

contract month

Other

contract months

Current & New Rules

250

500

1,500 for each month

 

For the Crude Oil Market, the Position Limit applicable to customers that used to apply to all customers is to now differ between commercials and non-commercials as follows:

CUSTOMERS

COMMERCIAL

NON-COMMERCIAL

Current Rule

2,400 for each month

New Rule

12,800 for each month

2,400 for each month

b) Member Position Limit

For the Gasoline and Kerosene Markets, the Position Limit applicable to members, which used to be determined based on different bands of net worth, is now to be set regardless of net worth at one level for each commercial member and non-commercial member as follows:

New rule for commercial members:

Net Worth

Current

contract month

2nd

contract month

Other

contract months

All

2,000

3,000

5,000 for each month

New rule for non-commercial members:

Net Worth

Current

contract month

2nd

contract month

Other

contract months

All

500

1,000

3,000 for each month

For the Crude Oil Market, the Position Limit that used to apply to all members and which also used to be determined based on different bands of net worth, is now to be set regardless of net worth at one level for each commercial member and non-commercial member as follows:

New rule for members:

Net Worth

COMMERCIAL

MEMBERS

NON-COMMERCIAL

MEMBERS

All

12,800 for each month

6,400 for each month

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