TOKYO — Tokyo Commodity Exchange has picked a subsidiary of China’s Zhengzhou Commodity Exchange as a service and trading system provider, hoping to draw Chinese investors to Tokyo.
The Tokyo-based commodity exchange is set to register China’s trading system developer Zhengzhou Esunny Information Technology as a service provider on Thursday. It will be the first time a Japanese commodity exchange collaborates with a Chinese service provider.
Currently, most of Tocom’s 29 service providers are either Japanese or Western. The deal will open the door for investors using Esunny’s service to trade Japanese commodities.
The Zhengzhou-based company was founded in 2002 as a fully owned subsidiary of Zhengzhou Commodity Exchange — one of the nation’s three major commodity exchanges. The system developer says the majority of China’s futures trading brokerages are its clients.
Tocom hopes that the partnership will lead to an expansion of trade, especially in arbitrage opportunities of commodities listed in both Japan and China.
But for Tocom to nudge Chinese investors to Tokyo, it will need to increase its presence as an oil and metal exchange among investors in China.
Nikkei staff writer Mariko Tai in Hong Kong contributed to this report.