TOKYO Aug 9 (Reuters) - The Tokyo Commodity Exchange said on Monday it will change the unit of deliveries of rubber futures contracts to 50,000 tonnes from the current 100,000 tonnes from the March 2011 contract to allow end-users more flexibility.
The move is in response to users asking for conformity with physical rubber deliveries, which are done in units smaller than 100,000 tonnes, TOCOM said.
The measure will apply from the contract expiring in March 2011.
"The step will allow traders to more flexibly adjust their volumes and can enhance trading over the long term, which will also help smooth price distortions caused by difficulties in deliveries because of the size," said a dealer at a Japanese commodity brokerage.
TOCOM is Japan's biggest commodity exchange and lists oil, gold, rubber and other industrial commodity futures. It has been struggling to boost trading volumes and has been taking a variety of measures to address the issue.
(reuters.com)
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