TOCOM to Revise Position Limits


Changes in the Market Management Detailed Rules in Connection with Revised Position Limits


TOCOM is currently striving to increase the market’s functionality as a part of the industrial infrastructure and to create internationally competitive rules for market operations by enhancing market reliability and convenience for market participants.  As part of this endeavor, for customer position limits on certain commodities, TOCOM made the distinction between commercials and non-commercials and assigned higher position limits to commercials.

TOCOM has extended the commercials category to all commodities to enhance convenience for commercials.

Moreover, with direct investment in commodities futures markets through investment trusts, etc. enabled by last year’s revision of the Investment Trust and Investment Corporation Act (Japan), in order to create an attractive market environment also for investment trusts, a new category for investment trusts, etc. has been introduced, with the same position limits applicable to commercials.

Furthermore, for certain commodities, position limits for members had been linked to their net assets and there may be cases where position limits lower than those for customers are applied depending on the net asset amounts.  Therefore these position limits have been revised.

These changes took effect on October 1, 2009.

Details of the changes

(1)Customer position limits

(i) Commercials

(ii) Investment trusts, etc.

(2)Member position limits

Please see the contract specification pages on TOCOM’s website for the customer position limits applied from October 1, 2009.