In regards to the Tokyo Grain Exchange Inc. (“TGE”) application submittance for the authorization for the pilot listing of rice futures on March 8 of this year, today, TGE received approval for this pilot listing from the Minister of the Ministry of Agriculture, Forestry and Fisheries.
Yoshiaki Watanabe, president and CEO, of the Tokyo Grain Exchange Inc. made the following comment:
“Today, we have received approval for the pilot listing of rice futures from the Minister of the Ministry of Agriculture, Forestry and Fisheries. The Exchange greatly anticipates, from the piloting listing of rice futures, that we will fulfill the needs of the rice industry as the Exchange provides a fair and transparent price benchmark and a hedging instrument to manage and avert price fluctuations and inventory risk. Furthermore, to sufficiently realize the functions of the futures markets and facilitate stable business operations for the rice industry, the Exchange is firmly committed marketing activities to assist in having many, including rice commercials, participate in our markets.
The birth of rice futures is in Dojima, Osaka in 1730 and rice was traded at the Tokyo Rice Exchange, the ancestors of TGE, until 1939. Following, distribution control etc. of rice took place and futures markets were closed. From the approval of the pilot listing of rice futures, this contract will be resumed after a period of 72 years and I would like to again express my deepest gratitude for your tremendous support as we feel that it is the result of your efforts.
We will begin preparation to start trading as soon and use ceaseless effort to examine rice production and distribution for the fair and smooth implementation of our rice futures contract. We hope for the continuous support of everyone.”
In addition, with this approval, the start date for the rice futures contract will be announced following the decision within the organization.
