On Jan. 11, the Tokyo Commodity Exchange (TOCOM) opened a physical market for oil products including gasoline and kerosene, the first such contracts by a Japanese exchange.

The listed contracts will be gasoline, kerosene, gasoil, bunker A, and low sulfur bunker A (LSA) for delivery by maritime shipment or at a refinery.

The main participants are oil refiners, trading houses and oil distributors, a TOCOM official said. Trade prices will be published on TOCOM's website.

"Execution prices will be used to determine the settlement of cash-settled oil futures contracts slated for listing in May 2017 at TOCOM," the exchange said.

"The exchange expects the result to be a useful new price index and will contribute to reinvigorating the existing oil futures market."

Physical contracts for oil products are currently traded in Singapore, which has traditionally served as a trading hub for oil markets in Asia.