Happy New Year. We wish your happiness has no boundaries throughout this year and many coming years.
The Exchange has moved from the traditional session trading system and implemented the NASDAQ OMX trading platform for continuous trading from January. This trading platform has global standard performance, features international level functions and provides market participants easy accessibility. Also the introduction of extended trading hours created an environment for expanded trading opportunities. Increase in liquidity is foreseen with such an user-friendly market. The upgrading of the trading infrastructure is the result of the consistent application of our policies set last year in our “Mid-term Business Plan”. As implicated in the Mid-term Business Plan’s strategy regarding listed products a rice study group was established last year. From June to December, five meetings took place in light of significant changes of the production and distribution situation since the previous application for approval of a rice futures contract and the mounting expectations to see in what role a rice futures contract will play in the present environment. Taking this into account, this year, efforts will be made towards promotion to gain the understanding of rice futures to those in the industry anticipating that this will be a step towards launching the market. |
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In addition, this January, the Commodity Derivatives Act has become enacted and laws basically prohibiting solicitation has come into effect. While more stringent regulations have been introduced, on the other hand prohibitions on over-the-counter agricultural trading has been lifted. This year could be an essential year for the industry to innovate their business model. Furthermore, the margining scheme was amended and a new clearing system, SPAN margining, that has been widely adopted in major exchanges around the world has been put in place further increasing convenience for market participants. | |
With the drought in Russia and the climatic instability of other producing areas, a decrease in production for grains, coffee and sugar tends to be seen in the global supply and demand. Decline in warehouse stock resulting for the tightening supply has increased risk aversion activities. The world’s agricultural futures markets are active however, in Japan, futures commodity markets are continuously in a stagnating state. Triggered by the widely amended Act now in effect and the broad reforms of the system, this opportunity should be embraced as it is at a crucial point for the development of the industry. | |
With the requests calling for the continuous stability of the agricultural markets, this year we will take various measures for the development of the markets to strengthen and heighten competitive power. We ask for your support and cooperation. Thank you very much. | |
January 1, 2011 Yoshiaki Watanabe President & CEO Tokyo Grain Exchange Inc. |
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