Let me begin by wishing you all happiness and prosperity in the New Year!
When I look back on the year 2012, I saw a heavy cloud hanging low over a troubled global economy-- the lingering effects of the sovereign debt issue in the EU. Since April 2012, risk aversion has been the prominent sentiment among market participants. Consequentially, trade at TOCOM market has thinned and it is regrettable that our yearly volume could not continue the recovery of 2011. On the other hand, we have seen some positive regulatory developments: the government is advancing legal reforms that favor commodity derivatives. Also, they are continuing development of a framework for a “comprehensive exchange” that would list multiple financial products and commodity derivatives. And the Industrial Structure Council continues to meet regularly to discuss the revitalization of the commodity futures market. At TOCOM, the two most significant decisions made in 2012 were the acceptance of the transfer of the Tokyo Grain Exchange’s agricultural contracts and the launch of the Agricultural Product and Sugar Market, which is planned for February 12, 2013. This will make TOCOM a comprehensive commodity exchange, listing agricultural commodities as well as industrial products, and shall mark a significant turning point in our history. Out of a strong sense of mission to regain the dynamism of the agricultural futures market, we will make concerted efforts to launch and develop this new market next year. Clearing is another area where we are making progress. In December, we acquired full ownership of Japan Commodity Clearing House (JCCH). We can now work with JCCH as one team to efficiently improve clearing functions that are in-line with global standards. For the year 2013, we will pursue an agenda that prioritizes the following three areas: Firstly, we will continue our efforts to acquire new market participants. We will strongly promote Broker Membership to major financial institutions that can offer brokerage and clearing services. For the new Agricultural Product and Sugar Market, we will focus on encouraging commercial enterprises, such as grain traders, to participate in the market; Secondly, we will collaborate closely with Broker Members on marketing to institutional and retail investors, as well as commercial hedgers; Thirdly, we continue working to develop new products and to adjust the specifications of existing contracts to better serve the needs of market participants. From the beginning of the New Year, some significant changes in the business environment await us, including the establishment of the Japan Exchange Group, as well as our business expansion in agricultural commodities and clearing. It shall drive us to make some important decisions. I highly appreciate your continued support and collaboration along the way.