Tokyo Commodity Exchange
 | This article relies largely or entirely on a single source. (May 2021) |
| 東京商品取引所 | |
 TOCOM uses the logo of its parent company, Japan Exchange Group. | |
.jpg) TOCOM is headquartered in the Tokyo Stock Exchange Building. | |
| Type | Energy exchange |
|---|---|
| Location | Tokyo, Japan |
| Coordinates | 35°41′19.3″N 139°46′46.5″E / 35.688694°N 139.779583°E |
| Founded | February 1951 (as Tokyo Textile Exchange) November 1984 (as Tokyo Textile Exchange) |
| Owner | Japan Exchange Group |
| Key people | Takamichi Hamada (President and CEO) |
| Currency | JPY |
| Commodities |
|
| No. of listings | 88 |
| Website | jpx.co.jp |
| [1] | |
The Tokyo Commodity Exchange (Japanese: 東京商品取引所, Hepburn: Tōkyō Shōhin Torihikijo), or TOCOM, is an energy exchange in Tokyo, Japan. TOCOM is operated by Tokyo Commodity Exchange, Inc. (Japanese: 株式会社東京商品取引所, Hepburn: Kabushiki Gaisha Tōkyō Shōhin Torihikijo, Corporate Number: 4010001121906),[2] a wholly owned subsidiary of Japan Exchange Group (JPX).[3] Under the Commodity Derivatives Transaction Act[4] of Japan, It is a licensed commodity exchange operator that provides market facilities for trading of commodity derivatives, physical commodities and commodity price index futures.[5]
TOCOM once operated electronic markets for precious metals, oil, rubber and soft commodities. It offered futures and options contracts for precious metals (gold, silver, platinum and palladium); energy (crude oil, gasoline, kerosene and gas oil); natural rubber and agricultural products (soybeans, corn and azuki).
JPX acquired TOCOM in 2019 and transferred these exchange-traded derivatives markets except energy derivatives markets to the Osaka Exchange in 2020, which became Japan's largest and one of Asia's most prominent derivatives exchanges.
Today, TOCOM is the only Japanese exchange that offers energy commodities futures on gasoline, kerosene, gas oil, Dubai Crude oil, liquefied natural gas, baseload electricity, peakload electricity, Chukyo gasoline, and Chukyo kerosene.
Products
[edit]TOCOM's Energy Market and Chukyo Oil Market offer the following products:[6]
| Category | Underlying | Product |
|---|---|---|
| Fuel | Gasoline | Gasoline Futures |
| Chukyo Gasoline | Chukyo-Gasoline Futures | |
| Kerosene | Kerosene Futures | |
| Chukyo Kerosene | Chukyo-Kerosene Futures | |
| Gas Oil | Gas Oil Futures | |
| Dubai Crude Oil | Platts Dubai Crude Oil Futures | |
| Liquefied Natural Gas | LNG (Platts JKM) Futures | |
| Baseload Electricity | East Area Baseload Electricity | East Area Baseload Electricity Futures |
| East Area Baseload Electricity Futures (Weekly) | ||
| West Area Baseload Electricity | West Area Baseload Electricity Futures | |
| West Area Baseload Electricity Futures (Weekly) | ||
| Peakload Electricity | East Area Peakload Electricity | East Area Peakload Electricity Futures |
| East Area Peakload Electricity Futures (Weekly) | ||
| West Area Peakload Electricity | West Area Peakload Electricity Futures | |
| West Area Peakload Electricity Futures (Weekly) |
History
[edit]
TOCOM was established in 1984 with the merger of the Tokyo Textile Exchange, founded in 1951, the Tokyo Rubber Exchange and the Tokyo Gold Exchange. The exchange became a for-profit shareholder-owned company in 2008.
It launched the current trading platform based on the Nasdaq OMX technology in 2009. TOCOM will use Japan Exchange Group's new derivatives trading platform, Next J-Gate, from September 2016.
In 2019 TOCOM was acquired by JPX.[7]
The retail electricity market in Japan was fully liberalized in April 2016, followed by a series of reforms of the electricity sector in Japan, such as the revision of the rules on power grids and the establishment of a baseload electricity market of the Japan Electric Power Exchange (JEPX).[8] Against this background, the size of the JEPX wholesale electricity market expanded rapidly to reach approximately one-third of the total electricity demand in Japan.[8] As most of the power companies that newly entered the retail power market rely on JEPX for procurement, the importance of JEPX increased and the need to hedge price volatility risk rose.[8]
In September 2019, to meet such demands, TOCOM listed four electricity futures contracts on a trial basis: East Area Baseload Electricity, West Area Baseload Electricity, East Area Peakload Electricity and West Area Peakload Electricity.[8]
In 2020, in order to centralize commodity trading and clearing operations, its non-energy futures markets were transferred to the Osaka Exchange and put under the management of Japan Securities Clearing Corporation (JSCC), which absorbed Japan Commodity Clearing House Co., Ltd. (JCCH), a subsidiary of TOCOM. This left TOCOM with only fuel and electricity futures trading.[9]
On 5 August 2020, TOCOM's head office relocated from the Tokyo Commodity Exchange Horidome Building in the Nihonbashi Horidomechō district to the Tokyo Stock Exchange Building in Tokyo's financial district, Nihonbashi Kabutochō. [2][10]
On 4 April 2022, TOCOM listed LNG (Platts JKM) futures contracts on a trial basis and changed listing status of the electricity futures from trial listing to permanent listing.[11] This will improve the market convenience of TOCOM as “Consolidated Energy Derivatives Exchange” where one can trade the electricity futures and the power generation fuel futures in one-stop trading environment.[11]
On 19 January 2023, JPX signed a memorandum of understanding (MOU) with JEPX so that TOCOM's electricity futures market and JEPX's electricity spot market could work together and share information to increase the convenience and competitiveness of the Japanese power market.[12] In 2022, fluctuations in electricity prices intensified due to several factors, such as rising fuel prices caused by the Russian invasion of Ukraine and concerns about power supply shortages in the summer and winter.[12] Under these circumstances, the role of theses markets to ensure stable power supply and hedge price fluctuation risks became even more important.[12]
References
[edit]- ^ "Corporate Profile". Tokyo Commodity Exchange Inc. Retrieved April 23, 2017.
- ^ a b "株式会社東京商品取引所の情報". National Tax Agency Corporate Number Publication Site. 2020-08-13. Retrieved 2024-08-25.
- ^ "Company Profile - Tokyo Commodity Exchange". Japan Exchange Group. 2023-04-01. Retrieved 2024-08-25.
- ^ "Commodity Derivatives Transaction Act - Japanese/English - Japanese Law Translation". www.japaneselawtranslation.go.jp. Retrieved 2024-08-25.
- ^ "Our Business". Japan Exchange Group. Retrieved 2024-08-25.
- ^ "List of Products". Japan Exchange Group. Retrieved 2024-08-25.
- ^ Kumagai, Takeo (March 28, 2019). "Japan's JPX, Tocom exchanges to merge in Oct, boost commodity, derivatives exposure". S&P Global Commodities Insights. Retrieved August 21, 2024.
- ^ a b c d "Electricity Futures". Japan Exchange Group. Retrieved 2024-08-28.
- ^ "Integration with Japan Commodity Clearing House | Japan Securities Clearing Corporation". www.jpx.co.jp. Retrieved 2024-08-21.
- ^ "商品先物取引の中心拠点、取り壊しへ 24年の歴史に幕 マーケットα". 日本経済新聞 (in Japanese). 2023-07-03. Retrieved 2024-08-30.
- ^ a b "New Listing of LNG (Platts JKM) Futures and the Change of Listing Status of Electricity Futures". Japan Exchange Group. Retrieved 2024-09-01.
- ^ a b c "Japan Exchange Group, Inc. Signs MOU with Japan Electric Power Exchange". Japan Exchange Group. Retrieved 2024-08-28.
External links
[edit]- JPX Official Website (in English)
- Top Executive Interviews "SOU"