TOCOM used to be the only commodity exchange in Japan acting as a clearinghouse to become a counterpart to each trade, while the other exchanges played a role of intermediary between members in their clearing process. Under the new framework, an independent clearinghouse (JCCH: Japan Commodity Clearing House Co., Ltd.) has been set up to provide clearing services for all the Japanese commodity futures markets. With this change, the TOCOM’s clearing and settlement operations were transferred from its internal clearing division to the new clearing organization, JCCH.
Other changes include the introduction of “direct deposit” system of customer’s trading margin. The direct deposit system requires that cash and securities deposited as margin by customers must be deposited with JCCH as trading margin, through Futures Commission Merchants. *1
These measures are part of revisions taking place in accordance with the amendment of CEL, making Japanese commodity futures market more reliable for both domestic and overseas participants.
For more information on TOCOM, visit Exchange website at www.tocom.or.jp.
*1 Note that the “substituted deposit” is also available for the FCM who has the consent in writing from its customer. Under the substituted deposit, an FCM may deposit proprietary cash or securities as trading margin instead of those deposited by the customer with the amount equal to or greater than the customer’s deposit.
