TOCOM Removes Position Limits on Dubai Crude Oil Futures



The Tokyo Commodity Exchange Inc., announced the elimination of position limits on Crude Oil Futures as of June 1, 2015. The elimination of position limits is global and will apply to all TOCOM Members and Customers. This is part the Exchange’s ongoing efforts to improve market usability. As announced in October 2014, the underlying product of the Crude Oil Futures is changed from the blend of Dubai and Oman to Dubai beginning with the June 2015 contract.  

TOCOM’s Crude Oil market has seen significant growth in volume and open interest since the end of last year when ETNs that track TOCOM prices saw increased investment. The Exchange received numerous requests from market participants to relax position limits, which would allow for more trading. TOCOM responded to these requests and expects that the removal of limits to provide for a stronger and more convenient market.

The Exchange considers it extremely unlikely that the elimination of position limits would negatively impact Crude Oil market operations, as the contract is cash-settled based on the Platts monthly average cash price. TOCOM also took account that the Intercontinental Exchange’s Brent market, which is cash-settled and has, in principle, no position limits, has experienced no operating problems.

[Reference] Position Limits on Crude Oil Futures (To Expire June 1, 2015)

  Attribution Position Limits per Contract Month
Commercials*1, Market Makers
12,800 contracts (640,000 kiloliter)
Members other than Commercials or Market Makers
6,400 contracts (320,000 kiloliter)
Commercials*1, Investment Trusts*2, or Market Makers
12,800 contracts (640,000 kiloliter)
Customers other than Commercials, Investment Trusts or Market Makers
2,400 contracts (120,000 kiloliter)

*1 Those who engage commercially in buying and selling of Listed Commodity Component Products.
*2 Those who engage commercially in composing and investing for investment trusts.