Corporate Profile

Tadashi EzakiPresident & CEOTokyo Commodity Exchange, Inc.

GreetingsThe situation surrounding our market has changed dramatically following the economic

globalization and the rapid development of information technology.

Corporations have become more sensitive to the price fluctuation risks of raw materials and sales

products, while investors are looking for even more convenient markets around the world.

　　　　Amid these changes, the importance of the commodity futures market as a venue for the

formation of fair and transparent prices, a tool for hedging price fluctuation risks, and an

investment vehicle for asset management, has been increasing.

In view of the significant roles performed by the commodity futures market, we are fully poised

to make our market more reliable and convenient, and concert our efforts to firmly position

ourselves as a world leading exchange, which is to commensurate with the status of Japan as an

economic giant.

　　　　　We are proceeding with a number of reforms to strengthen our competitiveness:

On December 1, 2008, TOCOM demutualized from a non-profit membership organization to a

for-profit stock company.

On May 7, 2009, the Exchange launched a trading system provided by NASDAQ OMX with the

world's highest level of performance and functionalities in line with global standards.

　　　　We will strive to improve our corporate value by fulfilling the needs of shareholders, members

and end-users, creating a truly vibrant market and improving business efficiency.

TOCOMーDriving Japan’s Commodity Futures MarketBoasting the highest trading volume of any Japanese commodity exchange, TOCOM has been one of Japan’s leading commodity exchanges ever since its establishment in 1951.

apan’s Premier Exchange

TOCOM was established as the successor institution of the Tokyo Textile Exchange, which was

founded in 1951 and merged with the Tokyo Rubber Exchange and the Tokyo Gold Exchange in

1984. This merger resulted in the establishment of a single exchange handling a diversity of

industry-oriented commodities.

As Japan's leading exchange and a vital component of Japan's economic infrastructure, TOCOM

has worked over the past quarter of a century to expand and modernize the commodity market

to a level comparable with international standards. TOCOM serves as a forum for the formation

of fair prices and also provides a valuable service to participants who wish to hedge risk.

TOCOM is Japan's largest commodity exchange, handling 81.2% of all commodity futures

transactions conducted in Japan in 2009.

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TOCOM’s Share in Japan’s Commodity Futures Trading

Total Volume : 35.55 million contracts （2009）

Tokyo Grain Exchange 13.6％

Central Japan Commodity Exchange 5.0％

Kansai Commodity Exchange 0.2％ 81.2

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TOCOM ‒ Attracting Worldwide 　　　　　　 Attention as a Leader in AsiaTOCOM has long kept abreast of economic globalization and developed a market environment accordingly. It has built ties with major exchanges around the world, and now attracts worldwide attention as Asia’s leading commodity futures exchange.

sia’s Leading Market

TOCOM has steadily expanded its commodity futures market by listing commodities that meet

the needs of the industry and by reforming its market design. In terms of trading volume, we

rank among the world’s top exchanges, and attract worldwide attention as one of the leading

exchanges in Asia. In recent years, we have developed ties with overseas exchanges and

improved access from overseas through ISVs to establish ourselves as a global market. As a

result, overseas participation in TOCOM’S market is growing rapidly.

We are constantly upgrading our market environment in line with international standards, driving

the development of Japan’s commodity exchanges and taking a leadership role in Asia.

Leading Asia's Commodity Markets

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TOCOM ‒ Attracting Worldwide Attention as a Leader in Asia

TOCOM’s Global Network

ICE Futures Europe

Multi Commodity Exchange of India (MCX)

Bahrain MonetaryAgency (BMA)

Dubai Gold &Commodities Exchange (DGCX)

Singapore Exchange (SGX)

Singapore MercantileExchange (SMX)

Agricultural Futures Exchange of Thailand (AFET)

Taiwan FuturesExchange (TAIFEX)

Shanghai Futures Exchange (SHFE)

Korea Exchange (KRX)

Dalian CommodityExchange (DCE)

New York MercantileExchange(NYMEX)

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The commodity futures market serves to shape fair and transparent prices in accordance with political, economic and other developments. TOCOM lists gold, rubber, oil and other globally used commodities, providing the world with price information.

TOCOM ‒ Bringing the World　　　　　　　 　　 Ahead of Times with Futures

elivering Benchmark Prices to the World

The global commodity market can be divided roughly into the three regions of North America,

Europe and Asia, each using different regional benchmarks. TOCOM is a leading commodity

exchange in Asia and the prices formed on the TOCOM Gold, Rubber and Crude Oil markets are

considered benchmark prices.

Throughout the world, gold is traded around the clock on spot and futures markets, with active

arbitrage transactions between these markets maintaining a high price correlation. Trading is

concentrated in different regional markets according to the time of day, shifting between

Tokyo, London and New York. Since TOCOM attracts a high level of liquidity, its Gold price is

widely recognized as a benchmark price in Asia.

Asia serves as a global trading center for the rubber market. Among rubber futures contracts

listed in several Asian commodity exchanges, TOCOM rubber plays a unique role in providing a

reference price to commercial players, such as producers, traders and manufacturers in

Thailand, Malaysia and Indonesia.

The global oil market consists of the three regions of North America, Europe and Asia. Each of

the regions has its crude oil benchmarks (“marker” crudes): NYMEX’s WTI in North America, ICE

Futures Europe’s Brent Crude in Europe, and TOCOM’s Middle East Crude Oil (average value of

Dubai and Oman crude prices) in Asia. The crude oil prices formed by futures markets have a

major influence as benchmarks on crude oil transactions worldwide. Fluctuations in the average

price of Dubai and Oman crude are followed closely by the rest of the world since it also affects

crude oil price trends in Asia.

TOCOM not only serves as a primary commodity exchange in Asia, but is also developing into

an international market linked to those in North America and Europe, and handling many

transactions from different regions and time zones.

TOCOM’s Benchmark Prices for Gold, Rubber and Crude Oil

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TOCOM ‒ Ahead of the Times

North America

NYMEX

CME

ICE Futures U.S

Europe

ICE Futures Europe

LME

NYSE Euronext Liffe

Asia

TOCOM

SHFE

DCE

ZCE

MCX

World Major Commodity Futures Markets

TOCOM Listed Products

TOCOM has established markets for precious metals, oil, rubber as well as Nikkei-TOCOM Commodity Index, and provides a forum for trading futures and options.

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Middle East crude oil (the average

value of Dubai and Oman which acts

as the benchmark price of Middle

East crude oil)

Regular Gasoline of JIS K2202 Grade

2 with maximum permissible sulfur

content of 10ppm

Kerosene of JIS K2203 Grade 1

Gold of minimum 99.99% fineness

(1kg / contract)

1/10th the size of the Gold Standard

contract

(100g / contract)

Options transactions based on gold

futures as the underlying asset

Silver of minimum 99.99% fineness

Platinum of minimum 99.95% fine-

ness

(500g / contract)

1/5th the size of the Platinum Stan-

dard contract

(100g / contract)

Palladium of minimum 99.95% fine-

ness

Gas Oil of JIS K2204

Crude Oil

Gasoline

Kerosene　

Gold Standard

Gold Mini

Gold Options

Silver

Platinum Standard

Platinum Mini

Palladium

Gas Oil

TOCOM is considering to launch other energy and metal products, as well as to start emissions trading.

Index Futures Transactions on the

Nikkei-TOCOM Commodity Index

TOCOM NEXT

Ribbed Smoked Sheet (RSS) No.3

Rubber

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TOCOM Listed Products

All of the TOCOM products are traded continuously on an electronic platform. Since its launch in

1991, TOCOM has relentlessly upgraded and increased the capacity of its electronic platform to

meet the requirements of investors from all over the world and to adjust to the ever-changing

futures markets. Thanks to ISV connections since November 2003, participation in the TOCOM

markets from overseas increased significantly, which has contributed to market growth.

TOCOM introduced the new generation trading platform with functionalities in line with

international practices and that delivers the world’s highest performance in May 2009. Designed

for derivatives, the system has a good track record in more than 25 exchanges it empowers

globally.

In conjunction with the launch of the new trading system, co-location service is also available to

provide greater convenience to market participants. We expect to bring new trading

opportunities to customers around the world with the flexibility, functionality and security

required for transacting in today’s commodity futures markets.

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Robust Technology, Gateway to our Market

Robust Technology, Gateway to our Market

Evolving World-Class Trading Platform

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Trading on the TOCOM Market

You can trade through TOCOM Broker Members from wherever you are. If the Broker Member

works with an ISV, seamless trading operations can be achieved. Naturally, you may also choose

to trade with a Futures Commission Merchant (FCM) in your country who can then place orders

through TOCOM Broker Members.

Another way to participate in the TOCOM market is to obtain TOCOM membership by going

through our financial and qualification screening process. Below are five categories of TOCOM

membership.

1. Broker Members: A member accredited with a Futures Commission Merchant (FCM) license, who can conduct both proprietary trading and brokerage business. A Broker Member has direct access to the TOCOM market.

2. Trade Members:A member who can conduct proprietary trading only and who has direct access to the TOCOM market.

3. Affiliate Members:A member who can conduct proprietary trading only and who must trade through Broker Members to have access to the TOCOM market.

4. Associate MembersA member who can conduct proprietary trading only and who must trade through Broker Members to have access to the TOCOM market. Only foreign firms can apply for Associate Membership.

5. Remote Trade MembersA member located outside of Japan, who can conduct proprietary trading only, and who has direct access to the TOCOM market （*1）

Trading on the TOCOM Market

*1 Pending approval from the foreign regulator to provide DMA to firms in its jurisdiction.

*2 A Remote Trade Member must have a clearing agreement with a JCCH Clearing Participant.

Trade/Remote Trade Member （*2）

AssociateMember

Customer

AffiliateMember

Foreign FCMOrder

BrokerMember

TOCOM

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Reliability, our Priority

Reliability, our Priority

Market Monitoring

Self-Regulation

To enhance the reliability of markets in an increasingly electronic trading scene, market

monitoring is vital to secure a sound market and a credible price formation. We are committed

to detecting any fraudulent trade to prevent market abuses, such as price manipulation, by

constantly overseeing market conditions and the transactions of each member firm. TOCOM

also oversees the compliance of members with laws and exchange rules.

For this purpose, TOCOM carries out real time market monitoring. In addition to traditional

supervision by experienced exchange staff, we have introduced an electronic market

surveillance system that can detect suspicious transactions based on records of trades, orders

and cancelled orders. This allows for an advanced trading surveillance on a real time basis.

Employing both human and electronic methods, we scrutinize any unusual order and trade

behavior to track down abusive or dubious trades.

In order to avoid possible conflicts of interest between the Exchange's self-regulatory

obligations and its commercial interest, TOCOM has a Representative Executive Officer

responsible for self-regulatory issues, apart from the one in charge of market operation

business.

Transaction at each commodity exchange Clearing at JCCH

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Clearing House

Clearing House

Clearing Process

In the past, TOCOM used to handle clearing operations through an in-house clearing house.

Following the implementation of the revised Commodity Exchange Act (CEA), the Japan

Commodity Clearing House (JCCH), an independent clearing house that integrates the clearing

operations of all Japanese commodity exchanges including TOCOM, was established in May

2005 and is the sole counterparty for all settlements.

FCMs are, of course, required to segregate their customers’ assets from their own assets and

must deposit customer margins directly to JCCH. As a result, even if the FCM should default,

customers are entitled to request the restitution of the deposited margins.

Thanks to the establishment of JCCH, FCMs trading in several Japanese exchanges only need to

settle the balance resulting from the netted mark-to-market settlement accounts at each

exchange. Therefore, as the back office operations of the clearing participants were simplified

and streamlined, fund management has become more efficient.

TOCOM

OtherExchanges

NettingNovationTransactiondata sent toJCCH

Transactionexecuted Clearing

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TOCOM Overview

TOCOM Overview

1951 February Tokyo Textile Exchange founded in Nihonbashi Horidome-cho, Chuo-ku, Tokyo

1952 December Tokyo Rubber Exchange founded

1982 February Tokyo Gold Exchange founded

1984 November

　　 1991 April Continuous trading on electronic platform started

1992 August Palladium listed

1997 April Aluminum listed

1999 July Oil market launched, gasoline and kerosene listed

2001 September Crude oil listed

2003 January 2nd generation electronic trading platform introduced

June

July Connection to ISVs started for facilitating the order placement from overseas

September Gas oil listed (listing discontinued between February 2006 and April 2010)

2004 May Gold options launched

December Complete liberalization of brokerage commissions Auction trading floor abolished

2005 May

September EFP transaction introduced in rubber, precious metals and aluminum markets

2006 July Daily publication of TOCOM Index started

2007 July Gold Mini launched

2008 November Platinum Mini launched

December Demutualized from non-profit membership organization to for-profit stock company

2009 May A new trading system launched based on Nasdaq OMX’s trading platform

October First phase of Revised Commodity Exchange Act enforced

2010 March Nikkei-TOCOM Commodity Index listed

Corporate History

(as of April 2010)

Tokyo Commodity Exchange, Inc. (TOCOM)Corporate Name

10-7 Nihonbashi Horidomecho, 1-chome, Chuo-ku, Tokyo 103-0012 JapanPhone: +81-3-3661-9191 (Switchboard)

Office Location

February, 1951(Date of the foundation of the Tokyo Textile Exchange, the survivingexchange after its merger with the Tokyo Rubber Exchangeand the Tokyo Gold Exchange into the Tokyo Commodity Exchange)

Foundation

To open and operate commodity markets necessary for dealing in futuresof the commodities listed (precious metals, rubber, aluminum, oil) on the markets based on the Commodity Exchange Act

Principal BusinessObjectives

1.989 Billion yenStock Capitalization

74Number of Employee

Tokyo Textile Exchange merged with the Tokyo Rubber Exchange and the Tokyo Gold Exchange into The Tokyo Commodity Exchange (TOCOM).

In-house clearing house establishedT + 1 (one day after transaction) settlement introduced

Revised Commodity Exchange Act enforced Japan Commodity Clearing House Co., Ltd. commenced operations

Corporate Profile