FIA Japan Seminar and Summer Party: Creation of Japan’s “Comprehensive Exchange Market”

Updated: Oct 16

 

On Friday September 13th, 2019, FIA Japan held a seminar co-hosted by JPX on the Creation of Japan’s “Comprehensive Exchange Market” at JPX’s TSE Hall, which was then followed by a reception. This “Comprehensive Exchange Market” refers to the announced takeover of TOCOM by JPX and the subsequent migration of some of its commodity markets to OSE. Over 140 industry professionals participated to the events, including senior officials from the regulatory bodies (FSA, METI and MAFF) and the CEOs of both JPX and OSE.

 

The goals of this seminar -- with simultaneous translation -- were for the audience to better understand the history that led to the comprehensive exchange, the path forward (i.e.: overall plans and timing) and what opportunities/advantages said exchange could offer. FIA Japan Chairman Yasuo Mogi kicked off the seminar with an opening presentation covering the history of the Japanese commodity markets in comparison to the development of the global derivatives markets, as well as FIAJ’s continuous involvement in these discussions.

Seminar MC, FIA Japan Vice President Peter Jaeger welcoming the attendees

 

 

 

FIA Japan Chairman Yasuo Mogi making a presentation on the background of the Comprehensive Exchange Market

 

 

 

 

OSE President and CEO Hiromi Yamaji delivering a keynote presentation on the path forward for the new Comprehensive Exchange

OSE President and CEO Hiromi Yamaji then delivered a keynote presentation on the JPX plans following the incorporation of TOCOM into its Group. One point made was that TOCOM is to remain as a “Comprehensive Energy Futures Market” (i.e: listing energy products such as oil and electricity futures) within the Group, while all of its other commodity products, including gold, are to be migrated to OSE around July 2020. He also noted that TOCOM’s clearing house – JCCH – is to be integrated into the JPX clearing house – JSCC, so that all financial/commodity products will be cleared by JSCC.

 

 

Following these opening remarks was a panel discussion, moderated by FIA Japan President Chip Clairmont (CEO ABN AMRO Clearing Tokyo - left), which included top executives from both OSE and TOCOM, Société Générale Securities Japan, Astmax Trading, Sumitomo Corporation and Tower Research Capital (Singapore). This panel of experts represented a balanced mix of industry players, from brokers to exchanges, to market users, commercial players and liquidity providers, hence making for a very interesting exchange of views and ideas. The panelists discussed several topics, including the details of the actual product migration and market synergies expected, clearing/system plans and regulatory issues. Participants had a chance to question the panel during a Q&A session and their overall feedback on the event was very positive.

 

 

 

 

You can find the presentation documents on the events page.

 

 

 

At the reception that followed, JPX CEO Akira Kiyota shared a few words, thanking FIA Japan for organizing such events to help develop the Japanese derivatives markets. Seminar participants had the opportunity to network during that time and further discuss with the seminar panelists and speakers.

 

 

 

To close the event, Mr. Mogi (center) asked for Mr. Kiyota (left) and FSA Commissioner Toshihide Endo (right) to join him on stage for a traditional “Sanbon Jime” for the successful establishment of the Comprehensive Exchange.

Left to right: FIAJ President Chip Clairmont; JPX CEO Akira Kiyota; FIAJ Chairman Yasuo Mogi; OSE CEO Hiromi Yamaji; FIAJ Vice Chairman Mike Ross

 

 

 

FIA Japan wishes to thank all the parties that were involved in making this seminar/reception a success and will continue to strive to organize such events to the benefit of its members and the industry as a whole.

 

 

 

 

 

After the event, FIA Japan Chairman Mogi made the following comments: “As this was our first seminar covering the comprehensive exchange, I was very pleased to see such a wide range of professionals participating, with large interest shown by both commercials and institutional firms. Although the consolidation of the markets through the transferring of TOCOM products (other than energy products) and the merger of the clearing organizations is expected to be completed in July 2020, it will require a high level of professional support including, but not limited to, educating the market participants/customers and reviewing the contract/market designs to meet the needs of the industry.

FIAJ will continuously support such process through its global organization and its network of industry-wide professionals.”

 

 

 

 

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