deal was sealed with the signatures of Tadashi Ezaki, president
and chief executive of Tocom, and Jeremy Ang, CEO of Sicom, at
a meeting in Tokyo.
spokesperson said talks were continuing, though at present
Sicom is hoping to offer its rubber futures to Tocom market
participants, while the Japanese exchange will list its own
Rubber Futures and its newly listed Nikkei-Tocom Commodity
bourses will also explore the possibility of cross-membership
so that members of one exchange can access the other remotely,
though this would be subject to regulatory
said he expected the deal to become "an important milestone in
strengthening the benchmark status of Sicom’s
said the agreement was a natural extension of the Japanese
exchange’s "good relationship" with Sicom, and
that he hoped it would boost Tocom’s Rubber
this collaboration, we would like to strengthen our
relationships with the Singapore market and solidify our role
of providing a venue for fair price formation and risk
management tools to global commodities markets," Ezaki said.
"Our RSS3 rubber is widely respected as the benchmark for
natural rubber prices, and many participants actively trade
this market from southeast Asia. There are numerous
possibilities that we could explore with Sicom, and we would
like to work together closely to increase market liquidity on
executive at a futures commission merchant in Tokyo described
the deal as an "interesting idea", which could prove beneficial
to both sides.
In May 2009, Sicom signed an agreement with the National
Commodity and Derivatives Exchange of India to develop a
cross-listing relationship. Sources close to Sicom have said
the exchange hopes to move forward with cooperation under this
deal in the fourth quarter of 2010, though the details are
still being finalised.
Sicom has two rubber futures, both of 5 tonnes and physically
settled: the Technically Specified Rubber 20 (FOB) Future, of
which 13,000 contracts were traded in April and 64,000 so far
this year; and the Ribbed Smoked Sheet 3 Future, with 3,770
bargains in April and 15,000 this year.
Tocom’s Rubber Future is the same size and also
physically settled, but has much higher volume –
309,000 contracts were made in April, bringing the year to date
volume to 1.1m. This means Tocom’s rubber volume
is about 14 times bigger than Sicom’s.
Colin Packham, Sydney firstname.lastname@example.org