Tocom first for Chinese rubber trader

Tokyo – HGNH International Futures Co. Ltd has become the first ‘remote broker member’ (RBM) of the Tokyo Commodity Exchange (Tocom), the Tokyo Commodity Exchange Inc has announced.

The move will initially involve rubber commodities and is being seen as opening the door for Chinese investors to trade in Japan.

HGNH “is entitled to participate in the rubber market at a clearing agreement with Phillip Securities Japan Ltd,” said the 21 Dec Tocom announcement.

Hong Kong-based HGNH is part of Nanfua Futures Co. Ltd, a major mainland Chinese futures commission merchant.

RBMs are foreign entities licensed as equivalent to commodity derivatives business operators in the country where the office is located.

These firms may trade on their own account and on behalf of their customers and will have direct access to Tocom markets.

While a business location in Japan is not a requirement, RBMs must designate a clearing broker.