Tokyo Commodity Exchange: Modifications In Oil Market Contracts

The Board of Directors decided at the meeting held today (September 19, 2007) to implement the following modifications on and after October 1st, 2007.

1) Price Limit expansion

Daily Price Fluctuation Limits are now to be determined based on the largest market price movement within a certain period of time and are to be set at a level where the probability that they will be reached is very low. Under this new rule, the Price Limit will initially be at around JPY 2,700, up from the current Price Limit of JPY 1,800.

Consequently, the Exceptional Measures for Price Limits are to be abolished. Please click here for details.

2) Position Limit largely eased

a) Customer Position Limit

For the Gasoline and Kerosene Markets, the Position Limit applicable to commercial customers is to be expanded as follows:

Please note that the Position Limit applicable to non-commercial customers is to remain the same.

For the Crude Oil Market, the Position Limit applicable to customers that used to apply to all customers is to now differ between commercials and non-commercials as follows:

b) Member Position Limit

For the Gasoline and Kerosene Markets, the Position Limit applicable to members, which used to be determined based on different bands of net worth, is now to be set regardless of net worth at one level for each commercial member and non-commercial member as follows:

New rule for commercial members:

New rule for non-commercial members: