The Tokyo Commodity Exchange (TOCOM) has rejected suggestions that it is preparing to merge with futures exchanges.

Masaaki Nangaku, chairman of TOCOM, has said that the group is not looking to get involved in any such deals, despite a growing number of similar agreements taking place across the world.

"At the moment, we are not considering merging with other futures exchanges," Reuters quotes Mr Nangaku as saying.

The news comes following the announcement from Daiwa Securities last week, which said it was hoping to join TOCOM in 2007.

That announcement led to some speculation that TOCOM would be looking for a merger with other futures exchanges, but Mr Nangaku has rejected such a suggestion.

However, Mr Nangaku welcomed the moves of Daiwa and its rival brokerage house, Nomura, to enter into the commodities sector, commenting: "The entry of new participants such as securities houses could work to raise the liquidity and also could raise the status of the overall commodities market."

Ÿ Adfero Ltd