Launch Of The RSS3 Index Contract On SICOM

The Singapore Commodity Exchange (SICOM) will be launching the RSS3 Index Contract on November 17, 1999. The RSS3 Index Contract is a revised version of the Rubber cash Settled Index (RCSI). The main features of the contract are: 1. The RSS3 Index Contract will be the US dollar equivalent of the RSS3 Contract in the Tokyo Commodity Exchange (TOCOM). This contract will allow rubber traders who want to hedge their physical rubber business in the Japanese market in US dollars, to manage their price risk more effectively. 2. .The revised contract will be traded on SICOM's computerised Trade input Driven System (TIDY). This electronic order driven system will enable a large number of participants to view and find trading opportunities throughout the trading hours. 3. The RSS3 Index Contract will be cash settled. Participants do not have to incur the cost of delivery. This feature would attract speculators as well as rubber traders to trade in the contract. 4. . SICOM has also made an effort to keep the cost of trading low. This will enable more companies to use the futures market more regularly and cost effectively to manage their commodity prices. Mr. Tan Hup Thye, Managing Director, Refco Investment Services, SICOM Director and Chairman of the RSS3 Index Contract Working Group said: "The feedback we have got from the trading community has been very positive. We are confident that the RSS3 Index Contract will attract worldwide participation." SICOM is optimistic that the new RSS3 Index Contract will attract enough participants to make it a useful risk management tool for the international rubber trading community.