TOKYO (Commodity Online): Gold, platinum and other bullion metals grabbed the center-stage on the Tokyo Commodity Exchange Inc (TOCOM) during the month of May 2010 with staggering volume growth in the bullion commodities.
Gold witnessed average daily volume of 66,354 contracts in May 2010 up by 33.9% from 49,545 contracts recorded in April 2010. Platinum contracts increased by 28.1% to 28,981 contracts during the month. The monthly trading volumes in gold and platinum remained at the top with gold monthly volumes at 1194371 contracts and platinum contracts at 521659.
Gold remained the most traded commodity on the exchange for the month of May 2010.
Meanwhile, average daily turnover for crude oil increased by 59.6% to 5,372 contracts, gasoline increased by 50.2% to 15,196 contracts and rubber increased by 6.4% to 15,661 contracts.
During the month, open interest in all listed commodities totaled at 288,770 contracts, an 8.2% decrease of 25,830 contracts from the end of the previous month.
TOCOM reopened the gas oil futures market and resumed trading on May 6 The gas oil futures contract was first listed on TOCOM market in September 2003 but suspended in February 2006.
Tadashi Ezaki, President and CEO of TOCOM said, I'd like to take this opportunity to thank all the concerned parties who have cooperated with us to make the reopening this morning of the gas oil futures trading on TOCOM possible. We have vigorously worked on preparations to offer a gas oil futures contract in response to the growing needs of the industry in reflection of the drastic changes in the environment surrounding this commodity in Japan. We have redesigned the contract so as to make a wider group of commercial players able to participate in the delivery process, while ensuring effective measures are in place to prevent the evasion of taxes imposed on gas oil. TOCOM will continue to make efforts to fulfill its important price formation function and to offer the ability to hedge the risk of price fluctuation.
Earlier this month, Singapore Commodity Exchange (SICOM) and the Tokyo Commodity Exchange (TOCOM) had announced the signing of a Heads of Terms agreement to develop cross-listing collaboration and enhance liquidity of the Singapore and Japan commodity markets.
The collaboration will pave the way for the cross-listing of each exchange's key contracts including rubber and commodity index. In addition, SICOM and TOCOM shall seek to offer cross-membership so that members can remotely access each other's exchange readily, subject to relevant regulatory approvals.
Through these initiatives, market participants on both exchanges would be able to access and trade products listed on each other's market conveniently, thereby promoting arbitrage opportunities and overall liquidity. To move forward with this endeavor, both exchanges will jointly set up a task force to develop a concrete project plan that will meet the needs of both markets.