Tokyo Commodity Exchange Inc. has agreed with U.S. derivatives market operator CME Group Inc. to start full-fledged negotiations on the joint use of CME’s Globex 24-hour trading system, sources said.
TOCOM President Tadashi Ezaki and visiting CME Chief Executive Officer Phupinder Gill reached the agreement in Tokyo, the sources said Thursday.
TOCOM and CME confirmed that they will start working-level talks on necessary costs.
They also discussed possible joint listings of crude oil and liquefied natural gas futures, according to the sources.
TOCOM will make a final decision after assessing the effects of the joint use on its cut in systems costs and studying ways to increase participants in its market, particularly foreign investors, the sources said.
Ezaki has said that TOCOM hopes to reach a certain conclusion by the end of this year on its possible cooperation with other exchanges over its selection of its next trading system.
Behind the stance is the uncertainty over a government-proposed comprehensive exchange for securities, financial derivatives and commodities and over the next derivatives system of Japan Exchange Group Inc.