TOCOM Rubber Contract RSS3 Asian Benchmark
One of the most popular contracts on TOCOM is rubber futures. Rubber is one of the oldest contracts on TOCOM as it first debuted in 1952. The rubber futures contract normally attracts the third or fourth highest volume out of all TOCOM commodity futures products. One reason for this is that the TOCOM rubber contract serves as the benchmark for the rubber industry in Asia.
A second reason for its popularity is that rubber futures are not traded on most global commodity exchanges so the contract is somewhat unique and less correlated to other commodity futures price movements. Therefore, market participants for rubber futures on TOCOM not only include tire manufacturers and Southeast Asia rubber producers but trading houses, investment funds, commodity index funds and speculators as well. The contract is continuously traded as all TOCOM contracts are and the trading hours are as follows:
The rubber contract on TOCOM is ribbed smoked sheet (RSS) No. 3 and deliverable.
Deliverable grades are international standard ribbed smoked sheet (RSS) No. 3 or 4 and deliverable to designated ports in Japan. The contract unit is 5,000 kg (5 tons). The deliverable amount is 10,000 kg (10 tons), which is 2 contracts(5 tons or 1 contract beginning from the March 2011 contract onward). The minimum price fluctuation is JPY 0.1.