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1. Price Limits and Initial Margins
Price Limits and Initial Margins, which used to be set upon predefined base-price band, will now be set based on the most recent price fluctuations.
(1) Details of Amendment
1) Price Limit
New Rule |
Current Rule |
Price Limits shall be set every month corresponding to the price fluctuation within the most recent fixed period of time. |
Price Limits are set every month at or above the predefined amount corresponding to the base-price band. |
2) Initial Margin
New Rule |
Current Rule |
Initial Margin shall be set every month at or above the amount calculated below(*1), by using the new price limit. |
Initial Margins are set every month at or above the predefined amount corresponding to the base-price band. |
(2) Date of Implementation
The new rule will be implemented from June 2006.
2. Exceptional Measures for Price Limits (Expansion)
The reference used in judging whether to lift the exceptional measures for price limits is changed from the expanded price limits to ordinary (original) price limits. (see below for the detail) .
(1) Details of Amendment(Condition for lifting the Exceptional Measures)
New Rule |
Current Rule |
In case the number of contract months hitting the ordinary price limit has not reached three, the exceptional measures (*2) for price limits are lifted. |
In case the number of contract months hitting the expanded price limit has not reached three contract months, the exceptional measures (*2) for price limits are lifted. |
*2 Exceptional Measures for Price Limits (Expansion of the Price Limit)
When daily closing prices for three or more contract months have reached the price limit in the same direction, the Daily Price Fluctuation Limit for all contract months except the first contract month shall be expanded by 50% from the following business day.
(2) Date of Implementation
May 1, 2006
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3. Removal of Price Limits on First Contract Month (Except Crude Oil contract)
The date of removing the price limits for the first contract months will be moved forward.
(1) Details of Amendment
New Rule |
Current Rule |
When a contract month becomes the first contract month, price limit is removed. This occurs on the business day following the last trading day of the current contract month. |
The price limit is removed for the contract month from the first business day of the month within which its last trading day is scheduled. |
(2) Date of Implementation
Market Division |
Date of Implementation |
1) Rubber Market Division |
From May 26, 2006 (June 2006 Contract) |
2) Precious Metals Market Division |
From June 28, 2006 (August 2006 Contract) |
3) Oil Market Division |
From May 26, 2006 (July 2006 Contract) |
4) Aluminum Market Division |
From June 28, 2006 (August 2006 Contract) |
4. Extraordinary Margin
TOCOM will add new rule on imposing the Extraordinary Margins for newly established positions when price volatility is rising to a certain level.
Apart from the condition specified below, if the Exchange deems it necessary for the market management purposes, the additional measures might be taken after consultation with the Contingent Market Management Committee, as practiced under the current rule. Such contingent measures may include, but are not limited to, imposing Extraordinary Margin, not only for the newly established positions, but also for existing positions.
(1) Details of Amendment
1) Condition to impose Extraordinary Margin
New Rule |
Current Rule |
When daily closing prices for three or more contract months have reached the price limit in the same direction for two consecutive business days, the Extraordinary Margin shall be imposed for newly established positions from the following business day. |
(N/A) |
2) Deposit Amount
50% of the ordinary price limit multiplied by the Contract Unit Multiplier.
<Example> The Case of Gold
Supposing that ordinary price limits are 60JPY, deposit amounts of Extraordinary Margins for deposit would be calculated as follows:
JPY 60×50%×1,000 (Contract Unit Multiplier) = JPY 30,000
3) Condition for Lifting the Extraordinary Margin
New Rule |
Current Rule |
In the case where daily closing prices for all contract months, except the first month contract have ceased to reach the ordinary price limit for three consecutive business days, the Extraordinary Margin shall no longer be imposed from the following business day. |
(N/A) |
4) Date of Implementation
May 1, 2006
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