Summary of September 2016 Activities at TOCOM TOCOM New Trading System Successfully Launched on September 20 September Volume Averaged 85,496 Contracts per Day, Down 3.7%, while Open Interest Continues to Expand Recording 9-Year- High (Tokyo, October 6, 2016 )The Tokyo Commodity Exchange announced today that average daily volume for September 2016 was 85,496 contracts, down 3.7% month-over-month. Volume for TOCOM s largest contracts was mixed; Dubai Crude Oil was up 5.5% to 19,849 contracts and Rubber was up 6.4% to 6,567 contracts while Gold Standard decreased 13.7% to 24,608 contracts. TOCOM Dubai Crude Oil traded heavily on speculation that whether OPEC would reduce production to curb worldwide supply. Precious Metals markets stagnated in September. The FOMC s decision on the interest rates and a Bank of Japan policy shift led the market to take wait-and-see approach. The Japanese yen was range-bound, trading between 100-103 JPY/USD, which reduced trading in precious metals. TOCOM successfully launched the new trading system on the Japan Exchange Group (JPX) derivatives platform on September 20. At the same time, the Exchange relaunched Gold Options with updated contract specifications. Total volume for the first 8 business days was 1,326 contracts (166 contracts average daily volume). At the end of September, open interest for all products was 558,641 contracts, an increase of 29,348 (5.54%) from the end of August. This is the highest level of open interst since the July 2007 mark of 594,672 contracts. TOCOM September 2016 Trading Volume Breakdown Contract Monthly Trading Volume Sept 16 Aug 16 Sept 16 Aug 16 M/M change Y/Y change Futures Gold 492,152 627,180 24,608 28,508-13.7% -21.9% Gold Mini 72,479 86,263 3,624 3,921-7.6% -25.9% Gold Rolling Spot 256,805 305,216 12,840 13,873-7.4% 5.4% Silver 4,551 7,593 228 345-33.9% 4.1% Platinum 211,252 229,141 10,563 10,416 1.4% -40.1% Platinum Mini 17,194 19,516 860 887-3.0% -32.8% Palladium 2,192 2,692 110 122-9.8% -42.1% Dubai Crude Oil 396,974 413,891 19,849 18,813 5.5% -2.3% Gasoline 72,099 60,201 3,605 2,736 31.8% -48.9% Kerosene 16,319 16,898 816 768 6.3% -40.4% Gas Oil 0 0 0 0 - - Chukyo-Gasoline 573 1,240 29 56-48.2% -69.8%
Contract Monthly Trading Volume Sept 16 Aug 16 Sept 16 Aug 16 M/M change Y/Y change Chukyo-Kerosene 394 469 20 21-4.8% -44.4% Rubber 131,349 135,816 6,567 6,173 6.4% -39.3% Corn 28,234 35,897 1,412 1,632-13.5% -8.4% Soybean 4,620 9,674 231 440-47.5% -67.7% Azuki 1,414 1,948 71 89-20.2% -20.2% Gold Option (Call) 519-65 - - - Gold Option (Put) 807-101 - - - Total 1,709,927 1,953,635 85,496 88,802-3.7% -22.2% Physical Gold (100g) 20 20 1 1 100% - Gold (1kg) 0 0 - - - - Total 20 20 1 1 100% - Trading Days 20 22 * Average daily volume for 8 trading days since the relaunch on Spetmber 20. ADV for all products and the total sum of each product ADV do not match to each other. Daily Average Volume and Month-End Open Interest -- Jan 2011- September 2016 September 2016 ADV: 85,496 contracts; Month-End Open Interest: 558,641 contracts (unit: 1,000 contracts) Month-End Open Interest (unit: 1,000 contracts) 200 180 Month-End Open Interest 160 140 120 100 80 60 40 20 0 2
Monthly Trading Volume by Session -- Jan 2011- September 2016 September 2016 monthly night session volume: 598,301 contracts (35.0% of total volume) unit: 1,000 contracts 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Day Session Night Session Ratio of Night Session 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% International Customer Trades (in Futures) -- Jan 2011 August 2016 Customer trades (combined sell & buy orders) originating overseas for August 2016: 1,869,334 contracts (47.8% of total trades) unit: 1,000 contracts 3,000 60.0% 2,500 International Customer Trades Ratio against Total Trades 50.0% 2,000 40.0% 1,500 30.0% 1,000 20.0% 500 10.0% 0 0.0% 3
Performance of Nikkei-TOCOM Commodity Index -- Jan 2011- September 2016 End of September 2016: 213.18, Monthly Change: -0.8% Index Point 380 360 340 320 300 280 260 240 220 200 180 September 2016 Nikkei-TOCOM Commodity Index Monthly Change Index Value on Monthly M/M Change Month-end Change 1 Nikkei-TOCOM Rubber Index 71.09 4.45 6.7% 2 Nikkei-TOCOM Palladium Index 150.29 3.90 2.7% 3 Nikkei-TOCOM Gasoline Index 136.04 1.32 1.0% 4 Nikkei-TOCOM Soybean Index 78.90 0.68 0.9% 5 Nikkei-TOCOM Silver Index 315.86-0.93-0.3% 6 Nikkei-TOCOM Oil Index 139.24-0.59-0.4% 7 Nikkei-TOCOM Industrial Commodity Index 211.69-1.69-0.8% 8 Nikkei-TOCOM Nearby Month Commodity Index 275.82-2.29-0.8% 9 Nikkei-TOCOM Commodity Index 213.18-1.77-0.8% 10 Nikkei-TOCOM Crude Oil Index 154.89-1.44-0.9% 11 Nikkei-TOCOM Gold Index 317.13-3.20-1.0% 12 Nikkei-TOCOM Precious Metals Index 249.57-3.29-1.3% 13 Nikkei-TOCOM Agricultural Product & Sugar Index 69.57-0.99-1.4% 14 Nikkei-TOCOM Kerosene Index 135.22-2.31-1.7% 15 Nikkei-TOCOM Corn Index 63.74-1.87-2.9% 16 Nikkei-TOCOM Azuki Index 88.85-3.01-3.3% 17 Nikkei-TOCOM Platinum Index 194.46-8.87-4.4% * Nikkei-TOCOM Leveraged Index and Nikkei-TOCOM Inverse Index are excluded from this ranking. 4
TOCOM and CITIC Futures International Sign Memorandum of Understanding TOCOM announced on September 1 the signing of a Memorandum of Understanding (MOU) with CITIC Futures International Co. Limited (CITIC Futures International). The MOU establishes a cooperative relationship where the parties will collaborate on mutually beneficial business opportunities. They will also pursue projects to increase market liquidity, reliability and operating efficiency. CITIC Futures International is a Hong Kong subsidiary of CITIC Group, a major state-owned conglomerate in the People s Republic of China. CITIG Group was established in 1979 and operates in finance, energy, manufacturing and real estate. Currently, CITIC Futures International is applying for a TOCOM remote broker membership. TOCOM and CITIC Futures Company Limited, the parent company of CITIC Futures International based in Shenzhen, are planning a joint marketing project in mainland China. Taiwanese Regulator Recognizes Gold Rolling Spot as Eligible Foreign Futures TOCOM announced on September 8 that the Gold Rolling Spot Futures contract has been recognized by the Financial Supervisory Commission of Taiwan (FSC) as eligible foreign futures for Taiwanese traders. Since Gold Rolling Spot launched in May 2015 trading volume and open interest has steadily increased to become one of the most actively traded commodities on the Exchange. In August, monthly volume accounted 15.6 percent of the Exchange's total volume. At the end of the month open interest was over 110,000 contracts. At TOCOM, international customer trades constitute approximately half of exchange trading volume (52.1% in June 2016, 50.5% in July). We intend to capitalize on this development by actively promoting our market to Taiwanese investors with local brokers. This will include seminars and a marketing campaign. A total of 16 of TOCOM s listed commodities have been recognized as eligible foreign futures by the FSC: Gold, Gold Mini, Gold Rolling Spot, Silver, Platinum, Platinum Mini, Palladium, Dubai Crude Oil, Gasoline, Kerosene, Chukyo-Gasoline, Rubber, Soybean, Corn, Raw Sugar and Azuki. 2016 Trades from Taiwan (Unit: contract) January February March April May June July Volume 6,406 6,554 7,703 8,791 8,211 7,185 6,854 Open Interest 603 735 636 445 580 585 845 5
TOCOM s New System Goes Live on J-GATE On September 20, TOCOM successfully launched a new trading and clearing system residing on J-GATE and the JPX Clearing System, both of which are operated by the Japan Exchange Group (JPX). The new system provides TOCOM with a significant increase in transaction and market data dissemination speed. Network connectivity with JPX has enabled TOCOM to offer investors a convenient one-stop marketplace for commodities and financial products. TOCOM expects the upgrade to attract financial derivatives traders who participate on the Osaka Exchange, a derivatives arm of JPX. TOCOM plans to work along with JPX to roll out marketing and promotional activities in support of both markets. In conjunction with the new system, trading hours have been extended to increase trading opportunities for market participants. The day session opens 15 minutes earlier (now 8:45 JST), and closes at 15:15. The night session has been extended by 90 minutes, opening at 16:45 JST and closing at 5:30 the next day. In addition, Gold Options have been re-launched with updated contract specifications that better meet investor needs. Options are now European-type and are cash-settled. Also a six-contract-month system is in place, which extends the maximum length of trading. These changes have made options more attractive to retail investors. TOCOM will continue to increase the reliability and convenience of the market as well as to support liquidity and the development of Japan s commodity futures industry. # # # 6