Tokyo Commodity Exchange (TOCOM)
The Tokyo Commodity Exchange (TOCOM) is one of Japan's major commodities and futures exchanges. It plays a vital role in providing a marketplace for the trading of a wide range of commodity futures and options contracts.
History
TOCOM was established in 1984, and it has its headquarters in Tokyo, Japan. It was created by merging several smaller commodity exchanges in Japan, consolidating trading activities and providing a centralized platform for commodity futures trading.
Commodity contracts
TOCOM primarily focuses on the trading of commodity futures and options contracts. The exchange offers contracts for various commodities, including precious metals, energy products, agricultural products, and more. Some of the key commodity contracts traded on TOCOM include gold, silver, platinum, palladium, crude oil, rubber, gasoline, and agricultural products like corn and soybeans.
Price discovery
TOCOM serves as a critical price discovery mechanism for commodities in the Japanese and global markets. The prices established on TOCOM are used as benchmarks for various industries, including precious metals for jewelry and industrial applications and agricultural commodities for hedging and risk management.
Market participants
TOCOM attracts a diverse range of market participants, including individual traders, institutional investors, commodity producers, consumers, and speculators. Market participants use TOCOM to manage price risk, speculate on price movements, and gain exposure to various commodities.
Trading hours
Morning session
Trading Starts: 9:00 AM (Tokyo Time)
Trading Ends: 11:30 AM (Tokyo Time)
Lunch break
There is typically a lunch break from 11:30 AM to 12:30 PM (Tokyo Time).
Afternoon session
Trading Resumes: 12:30 PM (Tokyo Time)
Trading Ends: 3:30 PM (Tokyo Time)
Please note that the trading hours mentioned here are based on Tokyo Time (JST - Japan Standard Time), and they may be adjusted for daylight saving time if applicable.
Regulation
TOCOM is regulated by the Japanese Financial Services Agency (FSA) and the Ministry of Agriculture, Forestry, and Fisheries of Japan. It is subject to Japanese financial and commodities trading regulations.
Electronic trading
TOCOM has introduced electronic trading platforms to complement traditional open-outcry trading. Electronic trading allows for greater accessibility and convenience for market participants.
Delivery and settlement
Some TOCOM contracts may involve physical delivery of the underlying commodities. The exchange has specific rules and procedures for delivery and settlement, including warehouse standards for the storage of physical commodities.
Global impact
While TOCOM primarily serves Japanese markets, it has an international reach, and its prices and contracts are followed by participants and industries worldwide.
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