.jpg)
Takamichi Hamada, President & CEO
Last year, Japan’s economy started a gradual recovery with improved employment and income. This was in spite of slowing economic growth in Europe, China and other emerging economies. Commodity markets were moderately active following increased volatility starting late last summer stemming from an anticipated economic slowdown in China.
At TOCOM, initiatives to reinvigorate the market continued with the launch of the Gold Daily futures contract last May. Gold Daily futures contracts have no maturity date and are attracting a great many retail investors. It has quickly become one of the most active commodities at TOCOM.
Trading in Dubai Crude Oil futures also expanded significantly last year. The underlying product was changed to Dubai crude oil from a previous blend, which is convenient for commercial participants. Additionally, an ETN based on TOCOM Dubai Crude Oil was heavily traded and prompted hedging on TOCOM. We see our Dubai Crude Oil contract winning stronger recognition as a Middle East crude oil benchmark.
Over the past year, TOCOM created a platform for non-resident investors to trade directly. JCCH accepted three General Clearing Participants, including the first bank in this category. As a result, the first Remote Trade Member and the first Remote Broker Member joined our marketplace.
We intend to build on these successes and transition to a solid recovery. To this end, we will implement the following initiatives in a timely and effective manner.
Firstly, we will continue with preparations to use the Japan Exchange Group’s (JPX) new derivatives trading system from September 2016. We work towards a smooth transition and launch of the new platform.
Secondly, we have our sights fixed on retail electric power deregulation, which will expand this April. We will endeavor to create an electricity futures market before the end of fiscal 2016 (March, 2017). LNG, LPG and coal are also being considered with the goal of creating for a comprehensive line-up of energy products at TOCOM.
Thirdly, we aim to become a comprehensive commodity marketplace with the addition of OTC and physical products. Achieving this provides for stronger pricing power and strengthens Japan’s industrial infrastructure.
Next, we are working on “TOCOM Square”, a gathering place for retail investors. Located at the Exchange, it will help promote commodity futures. We will be developing this in conjunction with industry associations and plan to run an active public relations campaign as well as promotional events.
And last, but not least, we will continue to develop relationships with exchanges and market participants in China. Asia and China in particular, have the potential to support strong growth in commodity trading.
On behalf of everyone at TOCOM, I’d like to wish you a peaceful and prosperous New Year. We hope 2016 will be a breakout year for Japan’s commodity market. Your continued support is highly appreciated.
Sincerely yours,
Takamichi Hamada
President & CEO
Tokyo Commodity Exchange, Inc.
