The Tokyo Commodity Exchange for Industry plans to computerize trading in precious metals as of April 1 following a two-year delay.
In announcing the start-up date, officials said the new system will
allow trading to be handled in the same way as stock transactions are conducted on Japan's major exchanges. At present, traders are required to show their asked or bid prices at auctions held several times daily.Under the automated system linking the exchange with offices of member companies, floor traders will no no longer be required and sessions will continue uninterrupted during business hours.
The officials added that by rapidly processing massive orders, the new system will encourage more overseas dealers to trade on the exchange. Eventually, this will lead to expansion and internationalization of the exchange operations, they pointed out.
It is also thought likely that computerization of trading operations will prompt the exchange to list palladium and the start of options trading.
''We have been looking forward to this new system for what seems ages," emphasized one exchange official. "It is about time that this move was made and I, for one, am expecting considerable improvements as well as significant growth as a result."
Over the past few years exchange authorities experienced difficulties with the commodity industry due to intense opposition to introduction of the computerized system. There was also a deep split involving what type of computer system should be installed.
Then, during trial operations of the computerized system various problems developed that further delayed the full-scale introduction of the process in trading operations for another two years.