Revision of Rules for EFP and EFT Transactions


<This is an English translation of the press release issued on December 30, 2013>

The Tokyo Commodity Exchange, Inc, announced today rule revisions for Exchange of Futures for Physicals (“EFP”) and Exchange of Futures for Swaps (“EFS”) in order to streamline the application procedure and improve convenience. The details of the revision, as described below, became effective on December 26, 2013 with the receipt of regulatory approval for the change of Market Rules and Brokerage Rules.

EFP transactions include a privately negotiated, off-exchange physical transaction. The counterparts submit to the exchange buy and sell orders that mirror the off-exchange physical trade with regards to price, contract month and volume. The EFP transaction is executed when the Exchange accepts the application. Likewise, EFS is a transaction whereby the parties executing a swap agreement enter a buy order and a sell order to be executed at the Exchange at the same price, contract month and volume as swap trade.
The Exchange expects the revisions of the rules to facilitate the utilization of EFP and EFS transactions.

Revision to:
Application documentation
Exchange-provided application form accompanied by a copy of the written agreement for the subject trade Exchange-provided application form only*1

Application Period

From 8:30 JST until 15:45 JST (15 minutes after the close of the day session). Subject to change when deemed necessary by the Exchange.

From 17:00 JST until 15:45 JST of the following business day
(Not including from 4:15 JST to 8:30 JST)*2

*1 When deemed necessary, the Exchange may conduct a post-transaction survey and request applicants to submit supporting documentation, such as copies of a written agreement, delivery confirmations and other details related to the transaction.

*2 On the last trading day of the year, applications are accepted until 15:45 JST. On the first trading day of the year, the applications are accepted from 8:30 JST.  

*3 Eligibility to conduct EFP and EFS is limited to “Commercial” entities involved in the production, processing, or merchandising of commodities.