The Exchange is planning to introduce a new trading system in May 2009.
Modifications of rules and regulations in a new system have been already released in the article of June 25, 2009. However, participants and customers are invited to keep in mind some of the more detailed modifications summarized below.
1. When the new trading system is successfully implemented on May 7, 2009, modifications of trading rules will apply to contracts after May 2009 contract during their trading. For those who would like to have positions in a contract after May 2009 contract, please understand the possibility of modifications in rules and regulations. The summaries of main changes are as follow:
1) Modification of Order Types
a. The current TOCOM-original Market Order will be replaced with the international standard for Market Order (if no matching order exists on the other side of the market, the former Market Order will be stored in the order book, whereas the latter will be canceled)
b. Since closing Ita-awase (auction) will be abolished, Market Order at Closing and Limit Market Order, which are currently offered by TOCOM to FCMs, will be eliminated.
c. TOCOM will make available to FCMs a variety of internationally recognized order types.
2) Modification of Execution Rules
a. Price limits will be eliminated and replaced with circuit breakers.
b. Executable Price Range and Warning Points will be abolished. Accordingly, a Market Order (international standard type) placed during continuous trading will be executed instantly if there is an order on the opposite side of the market (matching order) within the range of the circuit breakers (if there is no matching order within the set range, the order is canceled).
c. The concept of Simultaneous Orders (all orders registered at TOCOM Trading Center before the opening are considered orders received at the same time) will be abolished from order allocation procedure. Order allocation will be made based on price and time priority.
3) Extension of Trading Hours
The Exchange’s trading hours will be extended until 23:00. The morning session and afternoon session will be replaced by a day session without a lunch break (the opening Ita-awase auction of the afternoon session will be eliminated). On the Last Trading Day, trading will take place until the closing time of the day session (15:30).
Trading Hours (planned):
Day Session: 09:00 to 15:30 (orders start to be accepted at 8:30)
Evening Session: 17:00 to 23:00 (orders start to be accepted at 16:45)
2. When the new trading system is successfully implemented on May 7, 2009, the Last Trading Day (LTD) of contract month after May 2009 contracts for Crude Oil is advanced by one day.
The first business day of the month following the Current Contract Month
→ The last business day of Current Contract Month
(Example)
LTD of May 2009 Contract:
(Until May 7, 2009) June 1st, 2009 → (After transfer to a new trading system) May 29th, 2009
