TOCOM and SHFE sign an MoU

2006.5.26

The Tokyo Commodity Exchange (TOCOM) and Shanghai Futures Exchange (SHFE), two leading futures exchanges in Asia for metals, energy and rubber signed a Memorandum of Understanding (MoU) in Shanghai on May 26, 2006 to share information and establish a future cooperative framework. This occurred just before the 3rd Shanghai Derivatives Market Forum hosted by SHFE. 

The MoU is aimed at information sharing on new contracts as well as on changes to existing contract specifications and trading methods. The exchanges also agreed to explore areas of cooperation including employee training.

Mr. Nangaku, Chairman of TOCOM said, “SHFE and TOCOM, listing similar commodities, have a great opportunity to develop a cooperative relationship from the perspective of exploring trading opportunities and in the proper management of markets. Along with the economic growth of Asia, derivatives markets in the region have been rapidly expanding. I trust that, based on this MoU, information sharing between our two exchanges will benefit not only our respective exchange members, but also market participants.”

Madam Wang Lihua, Chairperson of SHFE said, “We as SHFE are pleased to establish an official cooperative linkage with TOCOM, which plays a significant role in the world commodity futures market. We believe the MoU will facilitate the further cooperation in related products and sharing of information between our two exchanges, which will create more opportunities for development on both sides. It is our hope that we will work together on the areas of mutual interests with the aim to strengthen market efficiency and functionality.”

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Shanghai Futures Exchange (SHFE) is the one of the largest futures exchanges in China. An entity founded in 1999, it now has four major commodity futures products (copper, aluminum, natural rubber, fuel oil) that enjoy a regional and global significance. It is a membership-owned organization and regulated by China’s Securities Regulatory Commission (CSRC). In 2005, trading volume of SHFE reached 33.78 million lots. In the first four months of 2006, SHFE accounts for 56% of the total trading value of the futures markets on mainland China. For more details, please visit SHFE website at www.shfe.com.cn.

The Tokyo Commodity Exchange (TOCOM), a mutually-associated commodity futures exchange established pursuant to the Commodity Exchange Law of Japan, consists of four (4) markets: oil (crude oil, gasoline & kerosene), precious metals (gold, options on gold futures, silver, platinum & palladium), aluminum, and rubber. TOCOM leads the Japanese commodity futures market with a share of approximately 55% in 2005, corresponding to a volume of 62 million lots and a nominal trading value of 1.4 trillion USD. Its state-of-the-art electronic trading platform is connected to major ISVs, and volume of foreign trades has been increasing year after year.

Contact:

SHFE
Mr.Yang Yushi
Tel: 8621-6840-1817
Email: yang.ys@shfe.com.cn

TOCOM
International Affairs Section
+81 3 3661 9215

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