The Central Japan Commodity Exchange has appointed Susumu
Kuroiwa as chairman and chief executive, effective from August
1. This follows an extraordinary general meeting on July 27.
Kuroiwa replaces Fumihiko Kimura, who had been chairman and
CEO for two years before resigning. Kuroiwa was previously
employed at the Ministry of the Economy, Trade and Industry,
which he joined in 1981.
Kuroiwa said he would focus on restoring the
exchange’s fortunes but said the task had been
made more difficult by the unprecedented adverse conditions
affecting the commodity futures market in Japan.
C-Com’s fortunes have been hit by the global
financial crisis. Year-to-date volume stands at 840,600
contracts, well down on the 3.27m contracts traded in the whole
of 2008. At the turn of the millennium around 30m contracts
were traded annually.
"My mission is to lead C-Com through this challenging period
to find the way to enhance its function of providing a fair,
transparent and user-friendly marketplace," Kuroiwa said.
C-Com plans to introduce dollar-denominated gold futures,
though it has yet to formally announce when these will go
"My immediate agenda is to achieve a successful launch of a
precious metal market, for which the exchange has been making
tremendous efforts," Kuroiwa said. "The introduction of this
product will bring the liquidity back to C-Com, and will
strengthen the competitiveness of our exchange, thus
contributing to the recovery of the entire Japanese commodity
Between March and May C-Com suspended trading in its rubber,
aluminium and gasoil derivatives, saying that the contracts
would be unlikely to trade in substantial volume until the
financial crisis was over.
Commodity trading on all four of Japan’s
commodity exchanges has declined in recent years. All parties
were hurt by the amendment to the Commodity Exchange Law in
2005, which changed the way business is done in the Japanese
commodity sector. The law made soliciting individual investors
difficult by putting curbs on sales techniques such as
aggressive phone marketing or cold calling.
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