Rice futures “Dojima Rice Average”that was listed on Dojima Exchange (ODEX) began on August 13.
Although trading volume on the first day was three, the actual operation day when market maker participated in the transaction was August 20, and on the day, a commemorative ceremony was held in Osaka. At its venue, the governor of Osaka prefecture, Hirofumi Yoshimura attended the ceremony and gave a congratulatory address. Moreover, the president of SBI Holdings―the group invested the maximum amount when ODEX solicited investment in 2021－Yoshitaka Kitao took the stage and made his thoughts regarding concept of Global Financial City clear mentioning “ODEX aims to become an integrated exchange in the future”. Dojima Rice Average is treated by the four traders, SBI SECURITIES, OKAYASU SHOJI, COMTEX and HOXSIN BUSSAN.

As for trading volume of Dojima Rice Average on the opening week when it was treated as a pre-opening event, it was three on the first three days including the first day, August 13, it was nil on August 16 and it was three again on August 19, that was no participants, and price buying and selling only. Trading volume on the actual operation day, August 20 was six.

The reason for slow initial response was because the prior awareness campaign by ODEX didn’t go well. However, as rice farmers are responding to the recent rise in rice prices, there is talk that they are actually interested in rice futures trading. Their common grievance is the very elementary problem such as “We don’t know where to trade it”, therefore, there will be a need for enlightenment tailored to rice harvesting schedules in major production areas after this.

The new rice futures transaction takes the form of index futures and its index price used as an indicator is calculated based on average price of one-to-one rice trading published monthly by the Ministry of Agriculture, Forestry and Fisheries (MAFF). Because physical delivery at ODEX cannot be done, for participants who wish to make deliveries of physical goods, ODEX responses various needs while collaborating with Future Rice Market that forms spot rice market to increase trading volume.

Although rice futures transaction that had been listed on ODEX previously was disapproved in August 2021, it was revived in just 3 years. However, even if a rice producer had left an account at a commodity futures trader, the account cannot be used for the new rice futures transaction, so it is necessary to open a new account.

（Futures Tribune・issued August 20, 2024 ・no.3306）