The Strategist

Tokyo Stock Exchange Operator acquires Tokyo Commodity Exchange

03/29/2019 - 11:02

Japan Exchange Group (JPX), the operator of the Tokyo Stock Exchange, intends to acquire the Tokyo Commodity Exchange (TOCOM) to attract more international traders and investors, writes Reuters.

It is expected that the transfer of most products from TOCOM to JPX platforms and consolidation of clearing operations will be completed after March 2020, according to a JPX statement. The amount and terms of the transaction are not specified.

Trading in both commodities and commodity futures on one stock exchange “will enhance convenience of the Tokyo market, strengthen its global competitiveness and its position as an economic center in Asia,” JPX expects.

The transaction can also support the unprofitable TOCOM, the volume of trading in which has declined amid development of futures markets in China and Singapore.

TOCOM, which history dates back to the 1950s, once was one of the world's largest commodity markets. However, last year the volume of trading on this site was less than 24 million contracts, that is, less than a third of the record 87 million contracts in 2003. 

Futures on gold, oil, platinum and rubber are among the most actively traded on TOCOM contracts.