Osaka Exchange to launch CME petroleum index futures on Sept 21

TOKYO (Reuters) - The Osaka Exchange (OSE), a unit of the Japan Exchange Group Inc (JPX), will list the CME Group Petroleum Index Futures on Tuesday to provide retail investors the opportunity to diversify their portfolios and hedge their positions.

"The listing is to meet investors demand, mainly among local individuals, to be able to trade crude oil futures, one of the leading global commodities," an OSE spokesman said on Friday.

The new product tracks the CME Group Petroleum Index, which reflects a weighted basket of three energy futures - WTI crude oil futures, RBOB gasoline futures and ULSD heating oil futures - traded on the New York Mercantile Exchange (NYMEX), the core market of CME Group.

The index is largely linked to WTI futures, a leading indicator of global crude oil prices, and this will add energy commodities to OSE's product lineup for the first time.

Transactions will be denominated in yen and will be cash-settled without physical delivery.

Starting on Tuesday when the trading system will be upgraded to boost capacity, the OSE, along with the Tokyo Commodity Exchange (TOCOM), will extend trading hours in the night session by 30 minutes for most of their commodities futures, except for OSE's rubber futures.

The OSE will also increase the number of contract months for the rubber futures to 12 from six while the TOCOM will do the same for crude oil products to 15 from six.

The most active contract for the rubber futures has been the forward month, but it is not clear which month will become the one until trading starts on Tuesday, the spokesman said.

The rubber contract was shifted to the OSE from the TOCOM in July last year after the JPX took over the TOCOM in 2019. The TOCOM plans to list new liquefied natural gas (LNG) futures next April.

(Reporting by Yuka Obayashi, Editing by Louise Heavens)

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