USE OF J-OIL EXCHANGE PTE LTD FOR JAPAN OIL FORWARDS (JOF) TRADING
J-OIL EXCHANGE PTE LTD (JOX) JOF site aims to facilitate Internet-based physical trading transactions of petroleum products, based on "JAPAN OIL FORWARDS (JOF)" contract written by GINGA. The basic specifications of transactions conducted through the JOX web site for JOF trading are as follows:
| 1) | Products:
Gasoline(0.001% Sulphur), Kerosene, Gasoil (0.001% Sulphur), AFO 0.1(LSA), AFO 1.0, HSCFO (3.0% Sulphur), LSCFO (0.3% Sulphur) *Details are as per JOF Contract | ||||||||||||||||||||||||||||
| 2) | Quantity:
Transactions conducted through the JOX systems are as follows *Each transaction on the JOF system may be in single or multiple lots of the following sizes. | ||||||||||||||||||||||||||||
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| 3) | Price:
The unit of measurement of price is in Japanese Yen (Yen) per kilolitre Please note that Gasoline prices quoted include the Japanese Gasoline tax of 53,800Yen per kilolitre. | ||||||||||||||||||||||||||||
| 4) | Pricing Methodology:
JOX web site provides 2 "trading halls" for JOF Trading, one is "JOF Fixed" and the other is "JOF Floating". JOF Fixed A price used in "JOF Fixed" transaction hall is always an actual figure which is F.F. (Fixed and Flat) basis. A transaction on JOF Fixed basis is concluded only when a buyer and a seller agreed upon commodity, delivery period, and the price. JOF Floating A price used in "JOF Floating" transaction is based on an average of the means of Japan domestic spot market covering Barges FOB refinery/primary storage Tokyo Bay or West Japan basis as determined by RIM Intelligence Co in a certain period (the "Averaging Period") plus a fixed premium/discount. A transaction on JOF Floating basis is concluded only when a buyer and a seller agree upon commodity, delivery period, Averaging Period, and fixed premium/discount. There are three types of Averaging Periods:- One week Two weeks; and One month. The buyer and seller will also need to agree a date for the commencement of the Averaging Period, which may begin prior to a delivery month. However, the expiry of the Averaging Period cannot fall after a delivery month. The minimum premium/discount in a JOF Floating transaction is 10Yen, and can only increase or decrease in increments of 10Yen. Rim Average Price used for JOF Floating transactions is calculated as below: All Rim average prices will be rounded off to the nearest whole number. If the first decimal place is five (5) or greater, the first digit will be rounded up to the nearest digit. For example, 125.5Yen will be rounded up to 126Yen. If the first decimal place is less than five (5), the first digit will be rounded down to the nearest digit. For example, 125.4Yen will be rounded down to 125Yen. | ||||||||||||||||||||||||||||
| 5) | Delivery Period:
For each product listed above, JOX web site will provide the trading period of three (3) forward half months. The trading of JOF period will close at 10th and 25th of every month of the current delivery month (if this day is not a business day, a trading in the Delivery Month will usually expire on the business day preceding the 10th and 25th of the current month.) A new 3-half month trading period shall commence following the close of the trading period. | ||||||||||||||||||||||||||||
| 6) | Trading Commodities:
JOF trading in JOX web site is for a physical trading transaction, and each delivery shall be made in the Delivery Period on FOB Tokyo Bay basis or West Japan basis. Details are in accordance with JAPAN OIL FORWARDS (JOF) contract by GINGA. | ||||||||||||||||||||||||||||
| 7) | Concluding contracts (function available on JOF Fixed only):
Firm Offers / Bids If you post a firm bid to buy and a counterparty posts an identical firm offer to sell, a contract is formed between you and that counterparty. This contract is formed without any further act on your part or the counterparty. Indicative Offers / Bids If you post an indicative bid to buy and a counterparty posts an correspondingly identical firm offer to sell, no contract is formed between you and the counterparty unless and until you confirm and accept that counterparty's offer. | ||||||||||||||||||||||||||||
| 8) | Credit line:
Each party has to set the limit of credit for each counter party on a daily basis. | ||||||||||||||||||||||||||||
| 9) | Negotiations:
All transactions shall be made through automatic matching system through the JOX web site or through negotiations between the parties using the chat function as provided in JOX system for JOF Dated trading. | ||||||||||||||||||||||||||||
| 10) | Trading Time:
9:00-19:00 (Singapore time) | ||||||||||||||||||||||||||||
| 11) | Others:
JOX will send the recaps (deal confirmation form) to both the selling party and the buying. This recap is a service provided to the parties remind them of transactions concluded through the JOX web site. The formal contract containing all the necessary terms and conditions shall be made between seller and buyer at a later time to be mutually agreed. |
