TOKYO -- Citibank Japan is seeking to join the clearing house that settles trades on the Tokyo Commodity Exchange. The exchange, known as Tocom, plans to list electricity futures in the latter half of 2016. Since trading units are expected to be around five times those of ordinary futures -- between 10 million yen and 20 million yen ($82,000 to $164,000) -- Tocom has been looking for a clearing member that can provide credibility. Citibank, for its part, hopes to do business with overseas investors engaging in high-frequency trading, helping spur the growth of Japan's electricity futures market in the process. The U.S. bank has already applied for membership in the Japan Commodity Clearing House. It expects to handle settlements on a variety of commodity futures, including precious metals. Citibank's move comes at a time when many European and U.S. investment banks are cutting back their exposure to the commodities market in light of tightening financial regulations. (Nikkei)
Citibank Japan is looking to join the clearing house that settles trades on the Tokyo Commodity Exchange, Tocom. This move comes at a time when many European and US banks are cutting back their exposure to the commodities market due to tighter financial regulations.