KYCX to Transition Cleared Energy Swaps to Futures

Top Quote All not cleared swaps will continue to be listed on KYCX's OTC platform, which will register as a swap execution facility. End Quote
  • (1888PressRelease) November 24, 2012 - Kyoto Commodity Exchange (KYCX), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced that all cleared OTC products listed on KYCX's OTC energy market will be transitioned to futures products starting the begging of the new year of trading. These products will continue be listed and traded on the KYCX platform and cleared thru KYCX Clearing Members, and block trades will continue to be available subject to applicable requirements.

    "Jurisdictions around the world are enacting policies designed to further regulate OTC swaps markets," said Kentaro Ogawa, President & CEO of KYCX. "Based upon our extensive analysis of new swap rules and consultations with a wide variety of customers, we believe that these policies will increase the cost and complexity for swaps market participants, both in absolute terms and relative to that of futures market participants. We anticipate a seamless transition that will largely preserve existing methods of transacting in KYCX's markets."

    Cleared Asian natural gas, electric power, environmental products and natural gas liquids (AGLs) swaps will be listed as futures on the energy division of KYCX Futures Cleared oil products, freight and iron ore swaps will be listed as futures on KYCX Futures. All products will continue to clear thru KYCX Clearing Members.

    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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