Japan Securities Clearing Corporation, with the cooperation of related parties, will apply blockchain technology to rubber futures delivery and settlement from January 2023 as the first step in utilizing blockchain technology. We will inform you that it will be introduced.
news release
-Utilization of Chinese Communist Party’s Blockchain Technology-Implementation of rubber futures settlement as the first delivery-https://t.co/5ww9jce8kG— Japan Exchange Group EN (@JPX_official_EN) January 30, 2023
subject
Delivery settlement of rubber (RSS3) futures* on Osaka Exchange, Inc.
* RSS (Ribbed Smoked Sheet) No. 3 futures trading is the most standard natural rubber graded by international organizations and public institutions in the producing countries.
Usage details
Currently, delivery settlement of rubber futures is carried out by exchanging documents called “delivery instructions”, and holders can receive delivery of rubber. In the future, the delivery method will shift to online exchange of tokens that record delivery order information using blockchain technology.
Reference: Delivery results by product derivative product (average on settlement date, unit: million yen)
Start time/Number of users
From delivery of January 2023 contract month (delivery settlement date: January 31, 2023 (Tuesday))
A total of 13 companies, including trading clearing participants, delivery traders, and warehouses that store delivery rubber in rubber delivery settlement
Expected effect
This eliminates the need for delivery order procedures such as preparation and delivery, which were previously performed between the seller, buyer, and warehouse each time rubber is delivered and settled, and the delivery and settlement is completed online. As a result, the efficiency of cash-on-delivery settlement can be improved.
Future prospects
Expansion to precious metals
Currently, settlements by delivery of precious metals such as gold, silver, and platinum, which are more liquid than rubber, are made through the exchange of securities called “warehouse receipts.”
Unlike delivery notes, warehouse receipts are securities and can also be used as collateral for various transactions. In the future, the legal system council of the Ministry of Justice is expected to consider digitization. Therefore, we will closely monitor the status of the discussion and consider the possibility of digitization as the next step.
Further improvement of settlement efficiency and strengthening of responsiveness for the future
The digitization of assets using blockchain technology has already been realized for retail securities such as real estate and bonds with low liquidity.
Japan Securities Clearing Corporation has decided to utilize blockchain technology for the first time in Japan’s listed commodity trading. In addition to striving to improve settlement efficiency through the introduction of new technology, in the future, we will strengthen our response capabilities with a view to expanding the use of such new technology in trading and clearing and settlement of listed products with higher liquidity. I will try. products and OTC products.
Source: Japan Securities Clearing Corporation
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