TOCOM Introduces Posted Settlement Transaction in October 2014



The Tokyo Commodity Exchange, Inc announced today that it was granted an approval from the Ministers of Agriculture, Forestry and Fisheries as well as Economy, Trade and Industry on September 9 to adjust the Exchange Rules and introduce Posted Settlement Transaction (PST). TOCOM will start accepting applications for PST on October 6, 2014. This is a new option to transact away from the market allowing all market participants to trade at the settlement price by prior application to the Exchange.

Brief prescription of Posted Settlement Transaction is as follows.

Eligible Commodities
All listed commodities
Eligible Contracts Months
All contract months

Deadline for Application
(Current Contract Month)

Offsetting trades: Before the end of the day session of the second business day preceding the Last Trading Day.

New trades: Same as the above
Eligible Trades
All trades (offsetting and new, proprietary and customer)
Eligible Applicants
All trading participants
Prior Registration
Not necessary
Settlement price for the applied clearing period
Minimum Quantity
One lot
Application Hours
From 9:00 a.m. JST to 3:25 p.m. JST
Date of Implementation
Monday, October 6, 2014

***** This news was updated with the official English name of this transaction.