Tuesday January 7 2014

News Source: Global Exchanges

Focus: Derivative Market Segment

Type: General




The Tokyo Commodity Exchange, Inc, has announced rule revisions for Exchange of Futures for Physicals (“EFP”) and Exchange of Futures for Swaps (“EFS”) in order to streamline the application procedure and improve convenience. The details of the revision, as described below, became effective on December 26, 2013 with the receipt of regulatory approval for the change of Market Rules and Brokerage Rules.

EFP transactions include a privately negotiated, off-exchange physical transaction. The counterparts submit to the exchange buy and sell orders that mirror the off-exchange physical trade with regards to price, contract month and volume. The EFP transaction is executed when the Exchange accepts the application. Likewise, EFS is a transaction whereby the parties executing a swap agreement enter a buy order and a sell order to be executed at the Exchange at the same price, contract month and volume as swap trade. 

The Exchange expects the revisions of the rules to facilitate the utilization of EFP and EFS transactions.

Revision To:

Pre-Revision

Post-Revision

Application documentation

Exchange-provided application form accompanied by a copy of the written agreement for the subject trade

Exchange-provided application form only*1

Application Period

From 8:30 JST until 15:45 JST (15 minutes after the close of the day session). Subject to change when deemed necessary by the Exchange.

From 17:00 JST until 15:45 JST of the following business day
(Not including from 4:15 JST to 8:30 JST)*2

Click on the above link for further details.