Tocom starts TSR futures trading

Tokyo – The Tokyo Commodity Exchange, Inc, Tocom, launched the listing of Technically Specified Rubber (TSR) futures on 9 Oct, with a total of 2,088 contracts traded on the first day.

“I would like to thank all parties concerned for their understanding and cooperation - the listing could not have been realised without them”, said Takamichi Hamada, Tocom president and CEO in a statement published after the first day of trading.

Tocom said it had designed new contract specifications for TSR in accordance with the standard FOB deliverable in Thailand, the world’s largest rubber producer.

The contract, according to Tocom, will also support Chinese participants, as the world’s largest rubber consumer.

“We expect active trading in these two countries, Japan and others in Asia,” Hamada added.

The launch of TSR is part of Tocom’s efforts to develop a global marketplace and expand its market presence.

The product type on offer is STR20 (Standard Thai Rubber 20) and is manufactured at Tocom-approved factories in Thailand.

The ports of Bangkok and Laem Chabang in Thailand and Penang in Malaysia have been designated for the physical delivery of the shipments.

Contract units are 5,000kg and delivery units are equivalent of four contract units, i.e. 20,000kg. Delivery method is FOB (free on board) on a buyer-designated vessel.

Tocom has been offering RSS rubber contracts for the past 66 years, but demand has been growing for TSR due to its consistent quality.

The opening price for TSR20 stood at Yen155/kg for October deliveries on 9 Oct. Settlement prices for March 2019 deliveries stood at Yen160/kg at the end of the first day of trading.