The Tokyo Commodity Exchange, Inc. (TOCOM) announced today a planned listing for Technically Specified Rubber (TSR) futures contracts in the middle of the fiscal 2018. The listing is pending regulatory approval from the Minister of Agriculture, Forestry and Fisheries and the Minister of Economy, Trade and Industry.
TSR is a class of natural rubber and joins Ribbed Smoked Sheet (RSS) in TOCOM’s rubber product lineup. TSR is an important product for the production of automobile tires. The material goes through a production process that includes crushing, washing and being formed into blocks before quality-control inspection. RSS, as the name implies, is rubber formed in sheets that is smoked. TSR production is rising and in Japan, went from 40 percent to 80 percent of natural rubber imports over the last ten years.
TOCOM will list TSR futures contracts to satisfy this increased demand and provide market participants with more flexibility in the Rubber market. TOCOM’s RSS contract has long been serving the interests of the rubber market with index prices and the Exchange expects to further enhance its presence with new TSR futures.
Outlook of the Contract Specifications for TSR Futures (tentative)
| Standard | TSR20 |
| Contract Months | Consecutive six months |
| Contract Unit | 5,000kg / contract |
| Delivery Unit | 20,000 kg / contract （Equivalent of 4 contract units） |
| Price Increment | JPY 0.1 per kg |
| Last Trading Day of the Current Contract Month | The last business day of the month prior to the current contract month |
| Delivery Day
and Time |
The shipment shall be executed between the first business day and the last business day of the current contract month and delivery shall be conducted until the ninth business day of the shipment. (e.g. For September contract: between September 1st and October 13th ) |
| Deliverable Grades | STR20, which is TSR20 manufactured at the TOCOM approved factories in the TOCOM designated country of production, Thailand |
| Delivery Method | FOB Bangkok （FOB＝Free on Board） |
| Delivery Points | Buyer-designated vessel in the Bangkok Port. Delivery may be conducted in other ports such as Laem Chabang, Penang and Palembang when buyer and seller consent. |
