TOCOM Introduces Block Trading to Enhance Market Convenience

2.4,2010

Tokyo Commodity Exchange, Inc. (“TOCOM” or the “Exchange”) announced today that the Exchange introduced Block Trading after having received approval from the Minister of Economy, Trade and Industry. TOCOM is the first Japanese commodity futures exchange to introduce Block Trading, which allows for transactions to be concluded apart from the market.

The advantage of Block Trading is that large orders can be executed without having a significant impact on the market. The Exchange has been receiving numerous requests from investors involved in investment funds and ETFs to introduce such capability. Therefore TOCOM designed this particular type of transaction to facilitate the use of block trades by such investors.

As per TOCOM’s previous announcements, the investment trust and ETFs, which invest directly in the Exchange’s Precious Metals market and will be launched soon, are expected to also enhance the link between commodity and financial markets. TOCOM will continue to improve Block Trading by extending the number of eligible participants so as to enhance market convenience.

Outline of Block Trading at TOCOM

Available Products All TOCOM listed commodities (including Options Transactions)
Available Contract Months/Series

All contract months and all series

*However, for the current contract month, block trading shall not be allowed for new trades submitted on or after the night session of the fourth business day preceding the Last Trading Day, as well as for offsetting trades submitted on or after the night session of the second business day preceding the Last Trading Day.

Block Trading Parties One of the Block Trading party is restricted to investors involved in investment funds and ETFs, while the counterparty is restricted to entities that qualify for TOCOM membership (funds and FCMs, commercials, financial institutions, etc.) 
Price Settlement price on that day
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