Tokyo Grain Exchange

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Tokyo Grain Exchange
Tokyo Grain Exchange.jpg
Founded Oct. 10, 1952, migrated to TOCOM February 2013
Headquarters Tokyo
Key People Yoshiaki Watanabe, Chairman
Products Futures and futures options on grains and softs

The Tokyo Grain Exchange (TGE) was a Japanese derivatives exchange that offered futures and options on soybeans, soybean meal, azuki beans, corn, coffee, raw silk, and refined and raw sugar.[1] TGE was acquired by TOCOM in 2013 and on Feb. 12, 2013, TGE agricultural products were launched at TOCOM as the Agricultural Product & Sugar Market, offering products previously traded at TGE.[2]


Background

The TGE was the first Japanese exchange to convert completely to electronic trading.[3]

TGE was ranked as the world's 46th-largest derivatives exchange by volume in 2010, falling four positions from the previous year, according to the annual volume survey published by the Futures Industry Association (FIA).[4] The FIA report, published in March of 2011, notes that the TGE's total volume for 2010 dropped by 40.6% from the previous year, falling to about 2.87 million contracts.

Products

DELISTED* Tokyo Grain Exchange Raw Silk

The Tokyo Grain Exchange decided on Sept. 15 of 2009 to delist its raw silk futures contract. This occurred in the wake of similar action by another exchange in the country.[5]

History

The exchange began trading rice futures in 1730 at the Dojima Rice Market when rice merchants requested that the feudal government of Tokugawa allow such transactions. In 1993 the exchange merged with the Tokyo Sugar Exchange to centralize trading. In 2006, it merged with the Yokohama Commodity Exchange.

In 2007, Japanese policy-making body, the Council on Economic and Fiscal Policy looked into folding the Tokyo Commodity Exchange and Tokyo Grain Exchange into the Tokyo Stock Exchange. This would involve the lifting of a bar on commodity trading at the TSE.[6]

In 2008, the Japan Commodity Futures Industry Association requested that the Tokyo Commodity Exchange, the largest Japanese commodity futures and options exchange listing oil, gold and other industrial products, and the Tokyo Grain Exchange merge to cut management costs.[7]

Annual Volumes

2009

Tokyo Grain Exchange ranked number 42 in 2009 in the Futures Industry Association's global list of top 53 derivatives exchanges measured by volume but falling nearly 43% on 2008's volume figure.[8] The FIA list, published in early April 2010, reports that that TGE's total volume for 2009 dropped to 4.83 million from 2008's figure of 8.43 million.

Structure and Regulation

The TGE had 45 brokerage members and 75 regular members as of 2007. There were 44 member firms trading in the agricultural products and 30 member firms trading in the sugar markets. The exchange is a non-profit organization, established under the authorization of the Ministry of Agriculture, Forestry and Fisheries.[9]

References

  1. About TGE. TGE.
  2. Message from the President. TOCOM.
  3. TGE. All Business.
  4. 2010 Annual Volume Survey. Futures Industry.org.
  5. Japan Set To End 115-Year-Old Raw Silk Futures Trading. ZEENEWS.
  6. Tokyo Exchange Merger Talks. Financial Times.
  7. Industry Body to Request 2 Tokyo Commodity Exchanges to Merge. JCN.
  8. 2009 Annual Volume Survey. FIA magazine.
  9. "About TGE”. TGE.