TOCOM to Adopt Alternative Delivery Procedure for Oil Markets



The Tokyo Commodity Exchange, Inc., (TOCOM) announced today that it has received regulatory approval for Alternative Delivery Procedure (ADP).

ADP is a futures contract provision that allows counterparts to deliver the underlying commodity under terms or conditions that differ from Exchange standards. An ADP application can be submitted to the Exchange for approval when during the delivery period long and short futures positions have been matched for delivery. ADP is widely used in the energy, and other markets, throughout the world.

TOCOM will adopt ADP for all petroleum products (except Crude Oil ) starting with the October 2014 contracts that conclude trading on September 25. Only commercial participants will be eligible to take advantage of ADP.

The Exchange continues to add flexibility for Oil Market participants. Introducing this delivery program is another step in supporting market particiapnts that ttade in physical commodity.