ASEAN KEY DESTINATIONS
TOCOM and TFEX Sign Memorandum of Understanding
(Tokyo and Bangkok, June 9, 2016) The Tokyo Commodity Exchange (TOCOM) and Thailand Futures Exchange (TFEX), announced that they have signed a Memorandum of Understanding (MOU), which will establish a cooperative relationship between the two exchanges. Both parties agreed to exert efforts to develop areas of cooperation and business opportunities which will mutually benefit both exchanges and lead to enhancement of liquidity, efficiency, integrity of the two marketplaces.
“We are pleased to embark on a cooperative effort. It is based on the friendship nurtured between our exchanges over many years”, said Takamichi Hamada, President & CEO of TOCOM. “Product cooperation will be one of the areas for collaboration. TOCOM Rubber is the world’s benchmark and Thailand is the world’s largest producer of natural rubber. We expect to start by promoting an understanding of derivatives’ effectiveness in risk management for rubber producers and risk takers in both countries. We will also look to employ innovative tools to expand the rubber futures markets in both countries.”
TFEX Managing Director, Dr. Rinjai Chakornpipat stated that “MOU is just the starting point for business cooperation between two exchanges. The cooperation will not only include the knowledge sharing between exchanges but also the exploring of feasible product cooperation that would benefit both marketplaces. With the merger of the Agriculture Futures Exchange of Thailand (AFET), TFEX has established essential elements to support and grow its agriculture futures business at local and international levels. The cooperation with TOCOM is aimed to explore the business opportunities that could mutually benefit both exchanges and support TFEX‘s international expansion.”
The Tokyo Commodity Exchange, Inc. (TOCOM) is Japan’s largest commodity futures exchange and one of the most prominent in Asia. Products include futures and options on precious metals (gold, silver, platinum and palladium); energy (Dubai crude oil, gasoline, kerosene and gas oil); and natural rubber and agricultural products (soybeans, corn and azuki). TOCOM’s gold market is the most liquid in East Asia and the Platinum market is most liquid in the world. TOCOM Rubber is the established global benchmark.
All of TOCOM’s products trade electronically, and with over 24 million contracts trading hands in 2015, TOCOM trades 98.5% of Japan’s commodity futures. Recent market upgrades are meeting the needs of the global trading community and now half of trading originates outside of Japan.
TOCOM originates with the Tokyo Textile Exchange, which was founded in 1951. TOCOM itself was established in 1984 with the merger of the Tokyo Rubber Exchange and the Tokyo Gold Exchange. In 2013, TOCOM launched the Agricultural Products & Sugar market having taken over soft commodity contracts from the Tokyo Grain Exchange. www.tocom.or.jp
Thailand Futures Exchange PCL (TFEX) is a subsidiary of The Stock Exchange of Thailand (SET). TFEX offers broadest span of derivative products including equity, precious metal, interest rate, energy, currency, and agriculture. The most liquid products are SET50 Futures, Single Stock Futures, and Gold Futures. SET50 Index Futures received a No-Action Letter from Commodity Futures Trading Commission (CFTC) in 2008.
In 2015 TFEX had trading volume of 48.5 million contracts and ranked 32nd among derivatives exchanges in the world by Futures Industry Association (FIA). TFEX daily average trading volume continues to grow and reached over 216,000 contracts in May 2016.
To serve both domestic and global trading as an efficient market place, TFEX employs state-of art technology for its trading and clearing system, making connection to TFEX fast and easy via Direct Market Access or co-location services. In 2015, TFEX was awarded “Best Technology Innovation by an Exchange” at FOW Awards in 2015. For more information, please visit www.tfex.co.th.
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