IPE Enters Into MOU With Tokyo Commodity Exchange

The International Petroleum Exchange (IPE), Europe's leading energy futures and options exchange, and The Tokyo Commodity Exchange (TOCOM), Asia's leading commodity futures market today announced that they have entered into a Memorandum of Understanding (MOU).

Under the terms of the MOU, both parties will cooperate with a view to helping the other party to:

• Make available trading in financial instruments traded on each exchange via computer terminals in the country of the other party;
• Secure the appropriate regulatory approvals from the UK and Japanese authorities;
• Explore mechanisms which will enhance the liquidity, efficiency and integrity of each market; and
• Discuss areas of cooperation, including new business opportunities or developments when they arise.

"The IPE looks forward to building a close working relationship with TOCOM, which we believe will bring significant benefits to the Members and customers of both exchanges," said Sir Bob Reid, IPE Chairman. "The opportunity to place trading screens in Japan is an important step in the IPE's move towards electronic trading and will open up the IPE's markets to a new pool of users and liquidity."

TOCOM Chairman Tadayoshi Nakazawa added, "We anticipate that cooperative relations with the IPE will substantially reinforce TOCOM's market functions as one of the three poles of the petroleum futures markets in the world. Arbitrage transactions between the IPE and TOCOM through electronic platforms will not only serve both exchanges but will likely constitute a contribution to the global derivative market itself."