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Tocom to relist gas oil futures
13 May 2010
The Tokyo Commodities Exchange is to relist its gas oil futures contract on May 6, in response to calls from Japan’s oil and gas industry to restart trading amid rising volatility.
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The exchange has received the approval of the minister
of economy, trade and industry.
The contract, first listed in 2003, was suspended in
February 2006 due to a lack of liquidity. It will relist in light of the
increased volatility of the crude oil price and the introduction of market
price-linked formulae into oil refiners’ wholesale pricing in Japan.
“We have redesigned the contract to make a wider group
of commercial players (such as distributors, users of gas oil, and oil
refiners) able to participate in the delivery process, while working to ensure
effective measures are in place to prevent the evasion of taxes imposed on gas
oil,” said Tadashi Ezaki, president of Tocom.