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News in brief: Tocom swallows TGE's clearing house stake


Tocom swallows TGE’s clearing house stake

Tokyo Commodity Exchange has announced that it will acquire those shares of the Japan Commodity Clearing House held by Tokyo Grain Exchange after October 1, 2010.

The move is likely to stoke speculation that Tocom is planning a full buyout of its ailing neighbour TGE, as Japan’s fragmented exchange market starts to coalesce.

JCCH has restrictions on the transfer of its shares, but at a meeting on September 3, its board of directors approved the divestment of TGE’s holdings to Tocom. Tocom will apply to the clearing house for a transfer of ownership on or after October 1.

As a result of this transfer, Tocom will own 63.3% of JCCH’s stock. The...

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