Japanese Commodity Exchange Eyes Middle East and South Asian Trading with Dubai FSA Approval

Tokyo Commodity Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, has received approval as a Recognised Body from the Dubai Financial Services Authority (DFSA), the regulatory authority for the Dubai International Financial Centre (DIFC).

DFSA sets standards for exchanges outside of the DIFC and rates operations and reliability. They grant Recognised Body status to exchanges that meet their standards. Exchanges approved as a Recognised Body are permitted to provide direct market access to the firms within the DIFC.

Based on this approval, TOCOM is looking forward to working closely with investors and hedgers not only from the Middle East, but also those in Europe, the United States, India and other regions that maintain offices in Dubai.

Dubai's DGCX is positioning itself as a liquid commodities venue, a recent influx of Indian commodity firms have boosted volumes on gold, oil and USD INR contracts.

The move by TOCOM could be a new wave of investment by Japanese financial services firms looking outside Japan for trade volumes. Japanese broker Hirose set up a UK regulated FX and CFD brokerage.