TOCOM and Ginga Energy Japan Establish Joint Venture Company for Operating OTC Platform 

11.29.2013

 

The Tokyo Commodity Exchange, Inc (TOCOM) and Ginga Energy Japan Pte. Ltd, announced today the establishment of the Japan OTC Exchange (JOE). This joint venture with Ginga, a Japanese subsidiary of Singapore-based energy broker Ginga Petroleum, will focus on OTC markets for petroleum and products. The new company is capitalized at 10 million yen with the authorized capital at 25 million yen. (Ginga Energy Japan: 60%, TOCOM: 40%).

The JOE will utilize its two parent companies to provide a platform for OTC markets for petroleum commodities and related products such as freight derivatives. The market will start with swaps on gasoline, kerosene, gas oil and crude oil for fiscal 2014 (starting in April 2014 and closing at the end of March 2015).

Tadashi Ezaki, President and CEO of TOCOM commented that, “the OTC and futures markets are complimentary. An actively traded OTC market is a precondition for a successful futures market and so TOCOM’s venture into OTC trading is particularly meaningful. And currently, the Japan Commodity Clearing House (JCCH – a wholly-owned subsidiary), is preparing to launch OTC clearing services by the end of fiscal 2013 (March 31, 2014). With these two OTC-related services, the TOCOM group can facilitate OTC trading and help invigorate and improve the convenience of the futures market.”

Nobuyuki Matake, President of Ginga Energy Japan, commented that, “OTC derivatives markets cater to the wants and needs of individual trading counterparts, whereas exchange-traded futures markets serve as a standardized marketplace. Therefore the JOE will focus on tailoring a market for participants that keeps reduced cost and increased speed at the forefront. Unlike regulated exchanges, which are required to provide a market to suit all participants, OTC market providers can develop new products with minimal risk. We are hoping to extend the success of new and innovative OTC products on the JOE to the TOCOM market in the future.  

Outline of the New Company

Name Japan OTC Exchange, Inc. (JOE)
Representative Directors Kohsuke Araki, Yu Koyanagi
Establishment November 29, 2013
Headquarters 1-15-8 Shibadaimon, Minato-ku, Tokyo
Capital 10 million yen for stated capital with the authorized capital at 25 million yen
Shareholding Ginga Energy Japan (60%), Tokyo Commodity Exchange, Inc. (40%)
Business Activities Operation of OTC markets for commodities, freight derivatives and related products, as well as all other services incremented or related.

 

About Ginga Energy Japan

Ginga Energy Japan was established in 2005 as a Japanese subsidiary of Ginga Petroleum (Singapore) Pte. Ltd. Ginga provides brokerage services for oil, petrochemical, tanker freight and coal in physical and derivative products covering the global marketplace. Ginga specializes in the open spec naphtha and petrochemical forward market in Asia. In 2012, Ginga set up Dojima Exchange in Japan as an electronic platform for trading domestic petroleum products and is working hard to develop this opportunity.

 

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