Tokyo Commodity Exchange (TOCOM)

What Is the Tokyo Commodity Exchange (TOCOM)?

The term Tokyo Commodity Exchange (TOCOM) alludes to a commodities futures exchange situated in Tokyo. The exchange was established in 1984 because of the merger between the Tokyo Textile Exchange, the Tokyo Rubber Exchange, and the Tokyo Gold Exchange.

It is the biggest exchange of its sort in Japan. Its mission is to work with the trading of products that depend on the Commodity Derivatives Act, which controls business around domestic commodities. A portion of the primary commodities listed incorporate precious metals and agricultural products. The TOCOM is a subsidiary of the Japan Exchange Group.

How the Tokyo Commodity Exchange (TOCOM) Works

The Tokyo Commodity Exchange (TOCOM) is a for-benefit stock company. It was purchased by the Japan Exchange Group in October 2019 and works as a completely claimed subsidiary. The TOCOM is the biggest marketplace in Japan and perhaps of the biggest market in the world for the purchase and sale of raw materials or primary goods, like natural resources.

The exchange offers investors the chance to trade futures and options contracts for rubber, gold, silver, crude oil, gasoline, gas oil, lamp oil, platinum, and palladium. Gold, crude oil, platinum, and rubber were the commodities with the highest trading volume in 2020. The exchange offers primarily actually delivered transactions. Be that as it may, cash-settled future trades might happen in the oil and precious metals markets.

The TOCOM works two trading sessions each day, with a break between the two sessions:

• The day session works between 8:45 a.m. what's more, 3:15 p.m. Orders are accepted for the daytime session at 8:00 a.m.
• The night session runs between 4:30 p.m. furthermore, 5:30 p.m. for the energy (excluding power) and aluminum markets, and 4:30 p.m. also, 7:00 p.m. for the power market. The exchange acknowledges orders for the night session daily at 4:15 p.m.

The exchange is closed on Sunday, Saturday, national occasions, December 31st, and the initial three days of the New Year.

The Tokyo Commodity Exchange utilizes 50 people and uses an electronic trading system. TOCOM originally permitted continuous trading on an electronic platform in April 1991. In January 2003, the exchange presented an advanced second-age electronic trading platform. New forms of the electronic system were presented in 2009 and 2013.

The exchange offers several levels of membership relying upon the type of business that the member conducts. Candidates must likewise be members of the Japan Commodity Clearing House (JCCH) to be considered for membership.

History of the Tokyo Commodity Exchange (TOCOM)

As verified over, the formation of the Tokyo Commodity Exchange (TOCOM) accompanied the merger of the Tokyo Textile Exchange, the Tokyo Rubber Exchange, and the Tokyo Gold Exchange in November 1984. The TOCOM initially centered around listing rubber, gold, silver, and platinum.

Over the course of the next twenty years, the scope of the TOCOM widened various times. During the 1990s, palladium, aluminum, gasoline, and lamp fuel were added to the exchange as extra listings.

Features

• The Tokyo Commodity Exchange is Japan's biggest commodities futures exchange.
• TOCOM works Monday to Friday and runs two trading sessions each day, with a break between each.
• TOCOM records futures and options contracts for rubber, gold, silver, crude oil, gasoline, gas oil, lamp fuel, platinum, and palladium.
• The exchange was made in 1984 following the merger of the Tokyo Textile Exchange, the Tokyo Rubber Exchange, and the Tokyo Gold Exchange.