Tocom attracts record flows from international traders
January set a record for cross-border trading at the Tokyo Commodity Exchange. More than 2.86 million contracts were traded by customers located outside of Japan, according to the exchange. That was equivalent to 50.8% of the exchange's total volume, the highest level of international participation the exchange has ever had. In contrast, international traders accounted for just 20% of the exchange's volume five years ago.
One factor driving the rise in cross-border flows has been an explosion in the trading of Tocom's crude oil futures contract, which is based on the price of oil from Dubai. The contract has benefited not only from recent volatility in the price of oil but also the popularity of exchange-traded notes that track the oil futures. Trading volume in crude oil futures hit record levels in 2014, and in January 66.8% of the volume in this contract originated from overseas.
The other two contracts that attracted heavy cross-border flows in January were rubber futures (60.4% of total volume) and gold standard futures (53.8%).
