Midterm Management Plan (Fiscal )

Transcription

1 Midterm Management Plan (Fiscal ) March 2017 Tokyo Commodity Exchange, Inc.

2 Management Strategies 2 1. Stabilize business base Expand the product portfolio based on the needs of the market. Focus on launching an electricity market and developing the options products. Swiftly implement market rejuvenation measures specific to market divisions and investor groups Enhance market reliability and convenience to attract a diverse set of domestic and overseas participants 2. Develop a comprehensive commodity market Drive forward initiatives to develop a comprehensive commodity market, a one-stop marketplace for commodities futures, options, OTC and physicals on our highly reliable trading and clearing platforms. 3. Strengthen coordination with other exchanges ⑴ Strengthen coordination with JPX Leverage the J-GATE platform and expand coordination with JPX to increase the competitiveness of Japan s derivatives market ⑵ Increase coordination with exchanges and regulators Increase coordination with exchanges and regulators in the U.S., Europe and Asia (including China) to expand cross-border trading and arbitrage to further expand the Exchange s global presence.

3 Priority Initiatives 3 Management Strategy 1: Stabilize business base 1. Grow revenues ⑴ Initiatives to increase volume 1 Attract a diverse set of market participants 2 Further expand the listed product portfolio 3 Enhance market reliability and convenience, market rules and regulations ⑵ Initiatives to increase open interest size and asset on deposit 1 Continue efforts to support commercial hedge transactions 2 Encourage financial institutions to organize financial products (ETF and ETN) based on TOCOM commodities and support active trading of such products. ⑶ Strategic planning of the fee schedule 2. Improve trading system operations for the JPX derivative system Update and improve trading system operations and specification of J-GATE 3. Improve financial capability ⑴ ⑵ Continue cost reduction efforts Raise fees across TOCOM group 4. Strengthen PR to improve the recognition and perception of commodity futures trading ⑴ Implement measures in conjunction with industry associations ⑵ Utilize TOCOM Square to deliver information in person and online, and support FCM marketing activities 5. Improve market convenience and reliability Move forward efforts towards regulatory reforms in accounting and taxation systems to respond hedging needs 6. Address the tightening of risk management regulations Respond to the tightening of cross-border risk management regulations

4 Priority Initiatives 4 Management Strategy 2: Create a comprehensive commodity market 1. Create an electricity market Push forward preparations for the launch of an electricity market 2. Start preparations for LNG and Coal futures listing as well as researching the potential LPG futures Prepare for listing LNG and Coal futures used by power generators in support of the new electricity market Research the potential listing of other energy products including LPG and banker oil 3. Activate the Japan OTC Exchange (JOE) markets Attract new LNG OTC market participants in support of the launch of an upcoming futures contract. Closely coordinate OTC clearing with CME Absorb JOE fully into TOCOM as a full subsidiary and establish a flexible management structure 4. Expand physical markets Expand physical markets for Gold and Oil by enhancing reliability and convenience of the marketplace 5. Research and develop future business plan Research the use of fintech such as blockchain Research subsidized premium program policy for options Research the potential for listing of long-term contracts (3-year and 5-year) for Crude Oil and other products Research the market for imported rice, etc.

5 Priority Initiatives 5 Management Strategy 3: Strengthen coordination with other exchanges 1. Strengthen coordination with JPX Leverage the use of J-GATE and pursue coordination with JPX to increase competitiveness of Japan s derivatives market 2. Strengthen coordination with exchanges and regulators in other countries ⑴ Coordination with CME and SGX Support LNG clearing at JOE and establish an electricity market Discuss collaboration for physical delivery for gold in Hong Kong Promote a joint study on cross-listing LNG derivatives based on LNG related benchmark pricing ⑵ Coordination with exchanges in mainland China Extend work with Chinese exchanges and brokers to promote arbitrage in anticipation of the opening of the Chinese market. ⑶ Information exchange with overseas exchanges and regulators Strengthen communications with exchanges and regulators abroad to support remote membership

6 (Reference) Fiscal 2017 Business Plan 6 Priority Initiatives in Fiscal 2017 Business Plan (1) Focus on attracting retail investors Situate TOCOM Square as the center for information on commodity futures trading for retail investors. Make information available in-person and online. Work closely with industry associations and TOCOM Members to facilitate communications. (2) Enhance efforts to create a comprehensive commodity market Expand from the traditional futures and options markets to include OTC and physical markets to create a comprehensive commodity offering. Further, establish TOCOM markets as benchmarks and provide reliable infrastructure support for Japan s industry. (3) Create an electricity market Create an electricity market for commercial and industrial participants as well as investors. Provide a hedging tool to the power industry. Continue researching a listing of new energy futures products such as natural gas and coal to create a comprehensive energy market

7 (Reference) Fiscal 2017 Business Plan 7 Business Strategy 1: Stabilize business base (1/2) Ⅰ. Grow Revenue 1.Initiatives to increase volume ⑴ Measures across all markets Implement measures to diversify market players and increase volume Retail Investors Futures Commission Merchants Commercials Clearing Participants Promote products popular with retail investors and that abide by uninvited soliciting regulations Host events/seminars for retail investors Distribute information in person and online at TOCOM Square Strengthen PR to improve the profile of commodity futures trading Support marketing/sales activities of FCMs Initiatives to help enhance capabilities of sales brokers Develop stronger relationships through activities of market activation committee Work towards improved physical delivery operations Work towards reforms in accounting and taxation systems to support hedging needs Attract new clearing participants Promote OTC clearing in attracting new clearing participants Global Market Participants Attract new global market participants Securities Brokerages, Local Prop Firms Financial Institutions Organizing ETF/ETN Attract new market participants Create / publish indices that respond to the needs of ETF/ETN organizers Work with JPX to encourage the creation of ETF/ETN linked to TOCOM products/indices Encourage listing of the TOCOM-linked ETF/ ETN on the overseas exchanges Develop relationships with institutional investors and encourage participation Encourage GPIF to invest in commodity ETF/ETN

8 (Reference) Fiscal 2017 Business Plan 8 Business Strategy 1: Stabilize business base (2/2) ⑵ Market-specific measures Implement measures to each market division (Precious Metals, Oil, Rubber and Agricultural Products) 2.Improve trading system operations for the JPX derivative system Update and improve trading system operations and specifications of J-GATE 3.Improve market convenience and reliability ⑴ Update trading rules and regulations ⑵ Consider sessions on national holidays, etc. ⑶ Research potential to listing of products denominated in foreign currency Ⅱ. Improve Financial Capability 1.Continue cost-cutting efforts 2.Raise fees across TOCOM group Ⅲ. Address the Tightening of Risk Management Regulations Respond to the tightening of cross-border risk management regulations across TOCOM group

9 (Reference) Fiscal 2017 Business Plan Business Strategy2:Create a comprehensive commodity market Ⅰ. Create an Electricity Market 1. Create an electricity market with related trading rules and regulations 2. Initiatives to activate electricity futures trading Ⅱ. Consider Listing of Natural Gas, Coal and LPG Futures Ⅲ. Establish the Japan OTC Exchange (JOE) Markets 1. Increase the promotion of the JOE markets 2. Strengthen coordination with CME and SGX 3. Develop a flexible management structure Ⅳ. Expand Business Domain 1. Continue efforts to create a comprehensive commodity market by establishing physical markets for Gold and Oil, etc. 2. Utilize block futures to enhance linkage between futures and OTC markets Ⅴ. Research and Develop Futures Business Expansion 1. Research into new listings 2. Research the use of fintech including blockchain 3. Research subsidized premium programs in policy usage of options 9 Business Strategy 3:Strengthen coordination with other exchanges Ⅰ. Coordination wish JPX Leverage the use of J-GATE and pursue joint marketing efforts with JPX to invite the global financial community to trade at TOCOM Ⅱ. Coordination with Exchanges in Other Countries 1. Coordinate with CME and SGX 2. Coordinate with exchanges, etc. in mainland China 3. Develop relationship with regulators in other countries