JPX Transfers Futures and Options Products from TOCOM to OSE

The Japan Exchange Group, Inc. (JPX) announced this Monday that it has completed its commodity derivatives transfer and clearing organization integration, ending the exchange operator’s transition to a “Comprehensive Exchange.”

Under the transition, JPX has transferred the futures and options on precious metals, rubber, and agricultural products from two of its exchanges from the Tokyo Commodity Exchange (TOCOM) to the Osaka Exchange (OSE).

Furthermore, JPX announced this Monday that it has integrated the Japan Securities Clearing Corporation (JSCC) and Japan Commodity Clearing House Clearing House A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e Read this Term (JCCH). The motivation behind the changes was to improve investor convenience as well as market Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term.

JPX aims to improve market liquidity

Commenting on the transition, Yamaji Hiromi, Co-COO of Japan Exchange Group, Inc., said in the statement: “Today, options and futures on precious metals and other commodities have been transferred to OSE, and the first day of trading successfully finished. The integration of the two clearing organizations was also completed.

“I would like to express my deep gratitude for the extensive and kind cooperation of the many parties who were involved, including investors, securities firms and futures traders. By expanding the range of products available on one platform and strengthening credibility through the integration of clearing organizations, I look forward to seeing improvements in investor convenience and market liquidity.”

Today’s announcement follows on from the JPX releasing its latest quarterly and half-yearly financial figures ending on June 30, 2020, showing a healthy uptrend across both the TSE and the OSE.

As Finance Magnates reported at the time, per the posted financial numbers, the daily average volume on the TSE for the first half of 2020 was recorded at ¥2.94 trillion ($27.3 billion), while for the similar half a year earlier the same number was at ¥2.55 trillion ($23.7 billion) – a year-on-year increase of 15.2 percent.