Message From The President And CEO Tokyo Commodity Exchange

 

Business Plan for the Fiscal Year 2009

 

   With the warm understanding and strong cooperation from our stakeholders, including shareholders and Members, we were able to move ahead with our business plan in the last fiscal year. Among other things, we have demutualized and build a structure to pursue prompt business execution and efficient operations under an appropriate corporate governance. We also have achieved an increase of capital.

    We have developed a midterm management plan and decided to concentrate our limited amount of management resources on (1) improving the trading environment through the introduction of the next generation system, etc., (2) expanding the line of listed products, and (3) intensifying marketing activities to promote wider market participation in order to stem trading volume decline and reverse it to an upward trend.

    In 2009, as the fist year of the midterm management plan, we are committed to execute the following strategy aiming at attracting participants in Japan and abroad to accomplish the targeted average trading volume of 150,000 contracts per day.

1. Improve the trading environment

On May 7, we will introduce the Next Generation System, which offers the world’s highest level of performance and fully meets international standards on trading functionality, and extend trading hours until 23:00 (19:00 for the Rubber market only). We will also adopt new trading rules such as Circuit Breakers, and services such as a Co-location service so as to boost market liquidity.

2. Expand the line of listed products

We intend to proceed with preparations for listing the Nikkei-TOCOM Commodity Index in fall, 2009 and to revitalize options trading. We will also arrange with related ministries to re-open the Gas Oil contract and to list Fuel Oil.

3. Intensify marketing activities

The Marketing Division will initiate and intensify marketing efforts to attract various participants to enter the TOCOM market. We will be actively encouraging commercials, investment funds and proprietary trading firms. 

   In addition to the above, we have started to establish an internal control system in compliance with the Financial Instruments and Exchange Act in order to achieve an IPO in fiscal year 2013.  Our agenda also includes research on the function and usability of Clearing System and keep on working on the English version of our rules and regulations.    

   Despite the severe business environment that is anticipated to continue, we are committed to make every effort to achieve major reforms, such as the introduction of the Next Generation System and to firmly position ourselves as a primary commodity exchange in Asia. Thank you in advance for your continued support and collaboration.