Tocom to reduce minimum lot size to 5 tonnes

ERJ staff report (DS)

Tokyo -- Tokyo Commodity Exchange, Inc. (TOCOM) is to halve the delivery unit of Rubber futures to 5 tonnes. TOCOM said it received approval for this change from the Minister of Economy, Trade and Industry and will apply this change from the March 2011 contract that will start trading on September 27, 2010.

Currently on TOCOM's futures market, the delivery unit is 10 tonnes while the contract unit is 5 tonnes. In the spot market, however, the delivery unit is generally smaller, at less than 10 tonnes. Therefore a number of commercial players have requested that the Exchange adjusts its delivery rules to match spot market practices.

TOCOM decided to decrease the delivery unit from 10 tonnes to 5 tonnes in order to meet the needs of commercials and improve the convenience of the market.

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Press release from Tocom