The Tokyo Commodity Exchange, Inc. (TOCOM) announced today the launch of a new trading and clearing system residing on J-GATE and the JPX Clearing System, both of which are operated by the Japan Exchange Group (JPX).
The new system provides TOCOM with a significant increase in transaction and market data dissemination speed. Network connectivity with JPX has enabled TOCOM to offer investors a convenient one-stop marketplace for commodities and financial products. TOCOM expects the upgrade to attract financial derivatives traders who participate on the Osaka Exchange, a derivatives arm of JPX. TOCOM plans to work along with JPX to roll out marketing and promotional activities in support of both markets.
In conjunction with the new system, trading hours have been extended to increase trading opportunities for market participants. The day session opens 15 minutes earlier (now 8:45 JST), and closes at 15:15. The night session has been extended by 90 minutes, opening at 16:45 JST and closing at 5:30 the next day.
In addition, Gold Options have been re-launched with updated contract specifications that better meet investor needs. Options are now European-type and are cash-settled. Also a six-contract-month system is in place, which extends the maximum length of trading. These changes have made options more attractive to retail investors.
TOCOM will continue to increase the reliability and convenience of the market as well as to support liquidity and the development of Japan’s commodity futures industry.