Trial listing system was introduced in Japanese commodity futures market in December 1990 when the amendment of the Commodity Exchange Act was enforced. The amendment of the Act set internationalization of Japanese commodity futures market as its basic principle and was very large scale that laid the groundwork such as introduction of options trading, establishment of a self-regulatory organization, complete segregated accounts from commodity futures traders of customer assets, opening of membership rights to foreign companies, etc. for market design that led to the present day. In those days, commodity exchanges in Japan weren’t company limited but membership system. Trial listing system was introduced whose purpose was to diversify listed products. Therefore, this time, we would like to look back background of the introduction of the system and listed products so far.

At first, as to background of the introduction of the system, there were times when the hurdles for listing a new product were extremely high. The biggest factor was negative attitude of actual users towards futures trading, and as a result, it was always that the debate between supporters and opponents of product listing had become more rigid.

In fact, the report regarding the amendment of the Act at the Commodity Exchange Council of the Government held in February 1990 pointed out“Our commodity futures market has few listed products and it is still globally local market. Also, there are economic needs for listing products, however, flexible listing is difficult.”

In those days, there were 16 commodity exchanges in Japan, and of those, 12 commodity exchanges were under the jurisdiction of the Ministry of Agriculture, Forestry and Fisheries (MAFF). However, most commodity exchanges had no new products for a long time. Grain and textile futures trading, which used to be the mainstay once, had been sluggish, and only raw sugar managed to keep liquidity. On the contrary to it, Tokyo Commodity Exchange for Industry (TOCOM) under the jurisdiction of the Ministry of International Trade and Industry (MITI), the Ministry of Economy, Trade and Industry (METI) at present, listed gold in March 1982, silver and platinum in January 1984, and had continued to grow ever since. Therefore, TOCOM ranked top in trading share among commodity exchanges in Japan and commodity futures trading had completely shifted to being dominated by precious metal products. In those days, the industry participants had shared the understanding that it was essential to list new products one after another for market expansion and development.

On the other hand, actual users who had been skeptical about futures trading had been seen as a hindrance to new listings. Indeed, although there were various products that had been listed once in Japanese commodity futures market such as aluminum metal, hen egg, pork, coffee, etc., actual users had voiced opposition during the research stage in those days, and discussion for listing had been stalled.

However, at that time, the choice fell upon the trial listing system that had been adopted in the U.S. and that could list any product smoothly and quickly.

Upon initial listing on the futures market in countries where futures trading was active such as the U.S., explanations and persuasion to actual users were performed basically, however, as to product, from producers to distributors and investors, there was a view that they were equally exposed to price risk, so any product tended to be approved relatively quickly.

The first products to which the trial listing system was applied in the Japanese commodity futures market were corn at Tokyo Grain Exchange (TGE) and Kanmon Commodity Exchange, and palladium at TOCOM. The three products were approved at the Commodity Exchange Council of the Government in October 1991. The trial listing system has an extension system, and during trial listing period of two or three years, if the relevant exchange determines that permanent listing is difficult and so on, the exchange can apply to the competent ministry for extension of trial period.

The following is trial products after the introduction of the trial listing system and whether or not permanent listing has been realized.

【Corn－Tokyo Grain Exchange (TGE)】】
Start of trial listing : April 20, 1992→Realization of permanent listing : April 5, 1994
【Corn－Kanmon Commodity Exchange】
Start of trial listing : May 1, 1992 →Permanent listing hasn’t been realized and it has been abolished.
【Palladium－Tokyo Commodity Exchange for Industry (TOCOM)】
Start of trial listing : August 3, 1992 → Realization of permanent listing : August 22, 1994
【Aluminum metal－TOCOM】
Start of trial listing : April 7, 1997 → Realization of permanent listing : April 3, 2000
【Aluminum metal－Osaka Commodity Exchange】
Start of trial listing : October 1, 1997 →Realization of permanent listing : October 1, 2000
【Arabica coffee bean, Lobster coffee bean－TGE】
Start of trial listing : June 16, 1998 →Realization of permanent listing : July 3, 2000
【International grain index－Kansai Commodity Exchange】
Start of trial listing : August 3, 1998 →Permanent listing has been realized : Date is unknown.
【Hen egg－Central Commodity Exchange in Japan (C-com)】
Start of trial listing : November 1, 1999 →Details are unknown.
【Broiler－Kanmon Commodity Exchange】
Start of trial listing : November 1, 1999 →Extension of trial listing : 2002 and September 28, 2005 →Permanent listing hasn’t been realized and it has been abolished.
【Gasoline, Kerosene－TOCOM】
Start of trial listing : July 5, 1999 →Realization of permanent listing : July 1, 2004
【Gasoline, Kerosene－C-com】
Start of trial listing : January 12, 2000 →Realization of permanent listing : July 1, 2004
【TSR20 Rubber－Osaka Commodity Exchange】
Start of trial listing : June 28, 2000 →Details are unclear.
【Soybean meal－TGE】
Start of trial listing : October 11, 2001 →Extension of trial listing : July 15, 2004 →Permanent listing hasn’t been realized and it has been abolished.
【Edible potato－Yokohama Commodity Exchange】
Start of trial listing : May 10, 2001 →Realization of permanent listing : May, 2004
【Coffee index－Kansai Commodity Exchange】
Start of trial listing : August 1, 2001 →Permanent listing has been realized. : Date is unknown.
【Crude oil－TOCOM】
Start of trial listing : September 10, 2001 →Realization of permanent listing : July 1, 2004
【Frozen shrimp－Kansai Commodity Exchange】
Start of trial listing : June 17, 2002 →Permanent listing has been realized. : Date is unknown.
【Soybean meal－Fukuoka Commodity Exchange】
Start of trial listing : July 1, 2002 →Details are unknown.
【Light oil－TOCOM】
Start of trial listing : September 8, 2003 →Realization of permanent listing : July 1, 2004
【Light oil－C-com】
Start of trial listing : January 9, 2004 →Details are unknown.
【Vegetable basket (index)－Yokohama Commodity Exchange】
Start of trial listing : December 20, 2004 →Permanent listing hasn’t been realized and it has been abolished.
【Iron scrap－C-com】
Start of trial listing : October 11, 2005 →Extension of trial listing : October, 2008 →Permanent listing hasn’t been realized and it has been abolished.
【Rice－TGE】
Start of trial listing : August 8, 2011 →Due to the dissolution of the exchange, it was transferred to Osaka Dojima Exchange on February 12, 2013.
【Rice－Kansai Commodity Exchange→The name has been changed to Osaka Dojima Exchange】
Start of trial listing : August 8, 2011 →Trial listing was extended four times, application of permanent listing was disapproved on August 6, 2021 and it has been abolished.

（Futures Tribune・issued September 26, 2023 ・no.3242）