Based on the Memorandum of Understanding singed in January this year, The Tokyo Commodity Exchange (TOCOM) and Tokyo Stock Exchange Group (TSE) have launched "Inter-market Cooperation Workshop" in efforts to improve convenience for participants of the both markets, and studied to reinforce cooperation between the commodity market and the stock market.
In light of the study at the workshop, TOCOM has added a "physically backed commodity ETF" as a possible physical for EFP (Exchange of Futures for Physicals) transactions at the exchange, which allows seller and the buyer, who holds agreement for physical transactions, to conclude the contract s in the commodity futures market without continuous trading of physicals.
Therefore, the “SPDR® Gold Shares”, physically backed commodity EFT listed on the TSE, which has a correlation with the gold spot price, can now be used as a physical for EFP transaction on TOCOM’s Gold market.
Thanks to this new arrangement, it is expected that the link between TSE's SPDR(r) Gold Shares market and the TOCOM Gold market will be strengthen and that the price reliability, as well as the liquidity of both markets will be enhanced.
For inquiries about this news release, please contact:
The Tokyo Commodity Exchange
Tokyo Stock Exchange