TOCOM and TFEX Sign MoU to Establish Cooperative Relationship

The Tokyo Commodity Exchange (TOCOM) has signed a Memorandum of Understanding with Thailand Futures Exchange (TFEX) for the purpose of establishing a coordinated relationship between the two exchanges.

The exchanges have agreed to focus on developing areas of cooperation and business opportunities which will mutually benefit both parties and lead to the enhancement of 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, efficiency and integrity of the two marketplaces.

TOCOM, which reported its May 2016 trading volumes last week, has welcomed the opportunity to work as a team to create long-term synergistic outcomes.

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Takamichi Hamada, president and CEO of TOCOM, said: “We are pleased to embark on a cooperative effort. Product cooperation will be one of the areas for collaboration. TOCOM Rubber is the world’s benchmark and Thailand is the world’s largest producer of natural rubber. We expect to start by promoting an understanding of derivatives’ effectiveness in Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term for rubber producers and risk takers in both countries. We will also look to employ innovative tools to expand the rubber futures markets in both countries.”

The memorandum of understanding marks the the starting point for business cooperation between two exchanges. Not only will the cooperation include knowledge sharing between exchanges, but also the exploring of feasible product cooperation and business opportunities that would mutually benefit both marketplaces and support TFEX‘s international expansion.