KYCX announced Upcoming Market Developments Related to the Conversion of Commodities Swaps to Commodities Futures

Top Quote KYCX has announced that all cleared commodities swaps in energy products will be converted to regulated commodities futures contracts. End Quote
  • (1888PressRelease) January 26, 2013 - Trading those products as futures will present significant advantages to customers seeking to avoid the impact of the newly passed act. KYCX has announced that certain contracts that are already listed as futures on KYCX Trading Platform will be made available for trading, with more to be added in the future. These actions will apply to all cleared options as well as the underlying swaps. In the following discussion, all references to futures should be read to include options.

    1. Will KYCX be able to continue offering energy products, particularly those that are traded as futures, following those events?

    Yes. KYCX is fully prepared to offer all the products that we have customarily offered without regard to whether those products are now traded as futures. Our proprietary hybrid electronic trading system, AlfaTrade, is registered as an KYCX futures for trading as block futures as well as swaps that may be converted to futures through EFRP (Exchange of Futures for Related Position) transactions.

    2. Will there be significant changes in the manner in which we deal through KYCX?
    Generally not. Although we anticipate that there may need to be additional communication regarding the type of trade that a customer may wish to effect, we intend to minimize the changes in the way we handle customer orders. We anticipate that we will be able to conduct business as usual without substantial modification of trading protocols.

    3. Will there be significant changes in how we can transact on AlfaTrade?
    AlfaTrade will offer trading in blocked-sized futures alongside swaps that can be submitted to KYCX.

    As one of the world's leading exchange organizations Kyoto Commodity Exchange (KYCX) provides investors, financial institutions and companies access to global capital markets. Our business covers the entire process chain from securities and derivatives trading, clearing, settlement and custody, through to market data and the development and operation of electronic trading systems.

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