Market News

Jun. 30, 2025 OSE Reform of Cash-Settled Rolling Spot Futures on Precious Metals

Cash-settled Rolling-Spot Futures for gold and platinum on Osaka Exchange (OSE) have recently been experiencing continuous large discrepancies between the market price and the theoretical spot price. In this regard, OSE already issued alerts on December 3, 2024 and February 18, 2025 respectively, advising investors that they should trade taking into account prices such as that of the lead contract of the standard futures contract, which is used to calculate the theoretical spot price.

However, without significant improvement in the discrepancy thereafter, appropriate price formation has been hindered, such as instances where the price reached the upper price limit calculated based on the theoretical spot price, preventing transactions from being executed. Additionally, there has been a decrease in liquidity, and consequently wider price fluctuations, which continues to create an undesirable situation from the perspective of investor protection.

In view of this situation, OSE has determined that in order to ensure that a diverse range of investors can trade with confidence, it is necessary to fundamentally change the nature of the existing Cash-settled Rolling Spot Futures. Consequently, we have decided to reform the existing Cash-settled Rolling Spot Futures into a new product that has a last trading day.

Specifically,

For more information on this matter, please refer to the following:

Please note that we have started a consultation on this matter as of today:

Previous alerts on this matter, for reference