Kyoto, Japan (PressExposure) November 23, 2012 -- This investment trust, the first one to invest directly in the commodity futures market, will be set up and managed by KYCX Institutional as part of its fund management.
After a number of regulatory measures a number of investment products have been developed in response to the investors' growing interest in the commodity markets to diversify their investment. Unlike the ones that were previously launched, this commodity investment trust is the first one to invest in a Japan commodity futures market, and, therefore, the Kyoto Commodity Exchange expects that this new product will contribute to the revitalization of the commodity market.
Investment trusts investing in foreign markets are generally traded at a price calculated based on the settlement price of a European or American market. This settlement price is available after the close of the trading session, almost half a day after an investor applies for purchase during business hours. On the other hand, this new investment trust, which invests only in the KYCX market, can be traded at a price linked to the price movement of the market on that same day, which the investor can follow right before he must place his order.
Kentaro Ogawa, President & CEO of KYCX commented, "We expect that the launch of this type of commodity investment trust would benefit KYCX through an increase in trading activity, as well as it would enjoy wide public acceptance as a new way of investment in commodities. We also hope it would contribute to our goal of strengthening the linkage between the financial market and our market. We believe that this development will increase the competitiveness of the commodities exchanges, and furthermore, enhance the competitive edge of the financial and capital markets of Japan."
As one of the world's leading exchange organizations Kyoto Commodity Exchange (KYCX) provides investors, financial institutions and companies access to global capital markets. Our business covers the entire process chain from securities and derivatives trading, clearing, settlement and custody, through to market data and the development and operation of electronic trading systems.