Trading Hours Extension at TOCOM

7. 21. 2009

Policy to be released in midterm management plan in March 2010 after reviewing trading and financial conditions

Tokyo Commodity Exchange, Inc. (“TOCOM” or the “Exchange”) resolved at the board of directors meeting today that the Exchange will study possibilities of extending the trading hours and decide on a policy by February 2010 so as to include it in the midterm management plan, which is planned for revision in March 2010. TOCOM started a night session between 17:00 and 23:00 (19:00 for rubber contract) upon the launch of the new trading system on May 7 this year. The next challenge for the Exchange is to further extend the trading hours and introduce “around-the-clock” trading.

TOCOM has laid out its policy to make all necessary efforts to introduce 24-hour trading six months after the launch of the new trading system (or within one year after the launch of the new system at the latest) in a resolution of the board of directors meeting in September 2007 and in a report submitted to the board of directors in November 2007. After the demutualization, TOCOM indicated in its midterm management plan developed in March this year that the Exchange “will consider offering around-the-clock trading based on the trading conditions and the Exchange’s financial situation.”

Considering the technical problems that occurred after the launch of the new trading system, TOCOM concluded that before extending trading hours it is first necessary to spend more time to confirm the stable operations of the new trading system, as well assess any potential effects on market liquidity and the Exchange’s financial situation.

Therefore, TOCOM has decided to tentatively establish its policy on a possible extension of trading hours by February 2010 (instead of the original target of six months after the launch of the new trading system), after having carefully considered the trading conditions and financial situation of the Exchange, as set forth in the midterm management plan.

 

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