Platinum and palladium are among the list of metals which has been approved by the Tokyo Commodity Exchange (TOCOM) for exchange of futures for physical (EFP) transactions.

EFPs enable investors to purchase commodities in the physical market and then trade them in the futures market, with the idea to boost the level of activity by physical traders.

TOCOM has already succeeded with EFP trades in the oil market and says it is keen to use the flexibility of the system to attract new participants to the market.

TOCOM chairman Masaaki Nangaku told Platts: "[EFP] brings in cash traders to TOCOM and at the same time reduces the impact on prices in times of massive buy-in."

An official added: "EFP, bringing higher delivery flexibility, would be effective for raising the turnover of palladium and aluminum."

Palladium is currently one of the least frequently traded commodity, operating at a fraction of the intensity of platinum – with TOCOM seeking to improve trading.


Ÿ Adfero Ltd