Tokyo Commodity Exchange introduces Block Trading to enhance market convenience

Tokyo Commodity Exchange introduces Block Trading to enhance market convenience

04/02/10

Tokyo Commodity Exchange, Inc. (“TOCOM” or the “Exchange”) announced today that the Exchange introduced Block Trading after having received approval from the Minister of Economy, Trade and Industry. TOCOM is the first Japanese commodity futures exchange to introduce Block Trading, which allows for transactions to be concluded apart from the market.

The advantage of Block Trading is that large orders can be executed without having a significant impact on the market. The Exchange has been receiving numerous requests from investors involved in investment funds and ETFs to introduce such capability. Therefore TOCOM designed this particular type of transaction to facilitate the use of block trades by such investors.

As per TOCOM’s previous announcements, the investment trust and ETFs, which invest directly in the Exchange’s Precious Metals market and will be launched soon, are expected to also enhance the link between commodity and financial markets. TOCOM will continue to improve Block Trading by extending the number of eligible participants so as to enhance market convenience.