Midterm Management Plan (Fiscal ) March, 2011 Tokyo Commodity Exchange, Inc.

Transcription

1 Midterm Management Plan (Fiscal ) March, 2011 Tokyo Commodity Exchange, Inc.

2 Contents 1. Current situation analysis 3 2. Basic strategies 4 3. Business strategies 5 4. Quantitative targets 10 Reference: FY2010 Actions taken 11

3 1 Current Situation Analysis (SWOT Analysis) 3 A. Opportunity External Environment B. Threat 1 Strength Regulatory unification with equity & financial markets 1,400 trillion yen in household financial assets 1 Strength x Opportunity Intensifying global competition among exchanges Negative industry image 1 Strength x Threat Internal Environment An Asian commodity futures market with high liquidity Listed gold=the stateless currency 2 Weakness Decreasing number of market intermediaries (brokers) High overhead due to system related investment Attract new overseas market participants Develop new products tailored to retail investors 2Weakness x Opportunity Strengthen sales activities to attract new market intermediaries Develop inter exchange linkage Further improve market capabilities for greater convenience Improve industry image 2 Weakness x Threat Pursue further cost reductions to lower the trade volume required for the Exchange to break even.

4 2 Basic Strategies 4 (1) Market Participants Strengthen sales efforts to attract a diverse set of market participants (2) Listed Commodities Develop new contracts tailored to investor needs (3) Market Design Further improve market convenience (4) Business Bases Bolster business base in ways that promote commodity market development (5) Improvement of industry image Challenge industry wide image problem Participation by more market intermediaries A diverse set of market participants Increased trading volume Enhanced Corporate Value

5 3 Business Strategy 5 (1) Market Participants Attract new market intermediaries (brokers) Cooperate with existing Members Strengthen sales efforts to attract market participation of new Broker Members and General Clearing Participants Support the marketing efforts of existing Broker Members Work more closely with existing market participants Attract new market participants Move forward with overseas marketing initiatives Bolster sales activities targeting retail / institutional investors, financial institutions and commercials Increase trade volume of existing market participants Enhance follow up initiatives to boost the trading volume of existing market participants

6 3 Business Strategy 6 (2) Listed Commodities Develop new contracts Develop new types of investment products tailored to the needs of retail investors (e.g. TOCOM gold linked contract) Prepare for opening agricultural commodities markets Consider possibilities of listing new contracts linked to OTC and commodity CFD markets Continue research on LPG LNG coal, copper, electricity and emissions trading Redesign existing contracts Redesign existing contracts to better suit needs of market participants Consider measures to revitalize options trading

7 3 Business Strategy 7 (3) Market Design Improve trading environment Strengthen clearing functions Improve trading convenience Introduce TAS (Trade at Settlement) Revise the give up system Provide DMA (depending on the completion of adjustments with overseas regulators) Maintain stable trading system operations Prepare for trading system upgrade Strengthen clearing functions Consider adopting OTC clearing Consider adopting foreign currency denominated settlement

8 3 Business Strategy 8 (4) Business Bases Develop alliances with other exchanges Consider possibilities for the development of ties with domestic and overseas exchanges to further growth of the commodity market and to enhance the Exchanges value Prepare for IPO Undertake preparations for an initial public offering in fiscal 2013

9 3 Business Strategy 9 (5) Improve industry wise image Improve image for commodity futures market in Japan Undertake ongoing initiatives employing various types of media to improve the image of the trading of commodity futures

10 4 Quantitative Targets 10 Fiscal 2011: Target average daily volume of 140,000 contracts through intensified marketing efforts to attract a diverse set of market participants, and bring operations back to profitability Fiscal : Target 10% year on year growth, including an increase in trading volume with the opening of soft commodity markets Trading Volume Target *1 Profit Target *2 Fiscal ,000 Return to profitability Fiscal , million yen or higher Fiscal , million yen or higher * 1 Average daily volume (unit: contract) * 2 Consolidated ordinary income

11 [Reference] Fiscal 2010 Actions Taken 11 Market Design Started offering Direct Access to the customers from the countries without official approval system (September 2010) Extended trading hours to 4:00 JST (exc. Rubber ) (September 2010) Started operating market maker system (September 2010) Expanded block trading to Commercials (December 2010) Adopted SPAN (January 2011) Listed Commodities Reopened Gas Oil contract (May 2010) Changed Rubber delivery unit (September 2010) Launched Chukyo Oil market (October 2010) Market Participants TOCOM price linked ETF listed (July 2010) Executed marketing efforts to attract a variety of market participants

12 12 Among TOCOM s plans, strategies and assessments published in this material, those which do not consist of historical facts are forward looking outlooks based on currently available information, therefore they include a wide range of risks and elements of uncertainty. Consequently, the business results and other data that are to be published thereafter may, due to various factors including the aforementioned, differ subsequently from what have been written in this material. DISCLAIMER: This English translation is being provided for informational purposes only and represents a desire by the Exchange to promote better understanding of the Exchange by non resident participants. While care has been taken to ensure that the translation is accurate and complete, Tokyo Commodity Exchange, Inc. accepts no liability or responsibility for any loss or damages, including trading losses, that may be incurred from any inaccuracy or omission in the English translation. In the event of discrepancies between the English version and the original Japanese version, the Japanese version shall prevail. Any dispute that may arise within or without a court of law with regard to the meaning of the words, provisions and stipulations of the rules, regulations and agreements shall be resolved in accordance with the Japanese texts.