What is 'Tokyo Commodity Exchange - TOCOM'

Tokyo Commodity Exchange (TOCOM) is designed with a mission of operating and overseeing commodity markets necessary for dealing in futures of certain commodities. Specifically, this means commodities listed on the markets based on the Commodity Derivatives Act, which regulates business pertaining to domestic commodities. Some of the main commodities listed include precious metals and agricultural products.

Commonly referred to by the acronym TOCOM, it was officially created in November 1984 when the Tokyo Textile Exchange merged with the Tokyo Rubber Exchange and the Tokyo Gold Exchange, to form one joint entity. By virtue of the entities that comprised that initial combination, the TOCOM focused on listing rubber, gold, silver and platinum at the start. Over the next two decades, the scope of the TOCOM broadened numerous times. In the 1990s, palladium, aluminum, gasoline and kerosene would be among the additional listings.  

BREAKING DOWN 'Tokyo Commodity Exchange - TOCOM'

Tokyo Commodity Exchange (TOCOM) is a for-profit stock company. It is the largest marketplace in Japan, and one of the largest marketplaces in the world, for the buying and selling of raw materials or primary goods, such as natural resources.  

TOCOM offers investors the opportunity to trade contracts for rubber, gold, silver, crude oil, gasoline, gas oil, kerosene, platinum and palladium Gold sees the highest trading volume of all the commodities traded on the exchange, followed by platinum, gasoline, crude oil and rubber.

TOCOM's innovative focus

As the bustling capital of a country that embraces technological innovation, Tokyo has long established itself as a pioneer in many areas ranging from culture to fashion. This tendency to lead the pack in breaking new ground is particularly notable in the area of technology. Tokyo is known for being the epicenter of cutting-edge technological advances and for being a hub where the very latest sophisticated electronics are unveiled.

It would seem only fitting that the Tokyo financial sector would also embrace that love of technology and utilize it to create and maintain financial marketplaces that are as smart and efficient as you would find anywhere throughout the world.  

The Tokyo Commodity Exchange uses an electronic trading system. TOCOM first allowed continuous trading on an electronic platform in April 1991. A more advanced second-generation electronic trading platform was introduced in January 2003. New versions of the electronic system would follow in 2009 and 2013. The marketplace takes pride in boasting innovative tools and aims to constantly monitor available technology to ensure it is using the most innovative and sophisticated platform possible.  

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