New Year's Message From The Chairman Of The Osaka Mercantile Exchange, Mr. F. Murata

1999 was another successful year for Osaka Mercantile Exchange. Our aluminium futures was traded actively especially in the first half of the year and the rubber and rubber index futures markets gradually recovered their popularity from their low prices. In total, we achieved more volumes than those traded in the previous year. I wish to express my deepest appreciation for the valuable support and cooperation by our members and the other people concerned. Amid the integration and mergers among major financial institutions, Japanese Gross Domestic Product growth turned, although moderate, positive on increased public investment and the nascent recovery of demand in the private sector including housing investment. Furthermore, U.S. economy is showing a steady growth with the successful financial policy, although there still remain apprehensions for the slowing down in the demand and unexpected sudden falls in stock prices. Asian countries are showing rapid recoveries, too. In the Japanese commodity futures industry, upon the revision of Commodity Exchange Law, commodity futures exchanges recently launched the new products that are closely linked to industries, such as gasoline, kerosene, chickens and eggs. They made extremely successful starts with bright prospects while bringing the competitions among commodity futures exchanges to light. Futures Commission Merchants, meanwhile, are on their way to establish the new electronic trading system to strengthen and expand themselves, taking the deregulation of trading fees into consideration. Amid the reforms of the financial system including the removal of barriers that used to divide the finance, securities and commodities, we are beginning to observe some active movements such as mergers and takeovers between middle sized securities firms. In this fast changing climate, I am pleased to announce that OME is going to launch the new Technically Specified rubber (TSR) 20 (block rubber) in the coming spring. I am certain that it will serve and contribute to not only the domestic rubber market, but the markets in Asian region, with its unique specification of FOB in Singapore. The other development is that the Ministry of International Trade and Industry (MITI) Osaka has set up the Kinki Metal Market Study Group to explore the possibility of establishing base metal markets in Kansai to revive the regional economy. Upon the presentation of their review that is expected to be in the coming spring, we would like to make our utmost efforts to establish attractive markets for base metals as early as possible. As we operate under an extremely competitive environment, your continuous understanding and cooperation shall be greatly appreciated. Lastly, I would like to conclude my message with gratitude hoping that this year 2000 will be another fruitful and successful one for us and for the commodities futures industry. Fumio Murata Chairman, Osaka Mercantile Exchange.