In 1950, the Commodity Exchange Law was introduced and commodity exchanges were established one after another. The Osaka Grain Exchange, precursor of the Kansai Commodities Exchange, was established in 1952.
Aiming to rebuild the Dojima Rice Market from the prewar days, the Osaka Grain Exchange listed cereals after the deregulation of starch and legumes in 1951, and hoped to also list rice someday.
During the remarkable changes in the domestic and foreign situation over the next 40 years, the Osaka Grain Exchange functioned to smoothly carry out commodity distribution, by implementing fair price formation and hedging risks for price fluctuation.
However, in order to strengthen its managerial base, improve social trust, and activate the Kansai economic bloc within a changing international economic environment, the Osaka Grain Exchange, Osaka Sugar Exchange and Kobe Grain Exchange merged into the Kansai Agricultural Commodities Exchange in October 1993. Furthermore this new Exchange merged with the Kobe Raw Silk Exchange in April 1997, and changed its name to the Kansai Commodities Exchange (KEX). KEX continued to be based in Osaka, the birthplace of Japan’s first commodity exchange. Thereafter we endeavored to list new commodities, and listed Corn 75 Index on Japan’s first agricultural products and feed index market in 1998. Subsequently, KEX listed NON-GMO soybean in 2000, Coffee Index in 2001 and Frozen Shrimp on Japan’s first marine product market in 2002. Finally KEX merged with the Fukuoka Futures Exchange on December 2006.
At last Kex started to trade rice future market on August 8, 2011. Furthermore, we took over “Tokyo Rice” from ‘Tokyo Grain Exchange’ in February, 2013 and changed the name to ‘Osaka Dojima Commodity Exchange’ at the same time. As the commodity exchange descending from "Dojima" and the only rice futures market in Japan, we aim at contributing to development and the activation of the product futures market.
Organization and Operation
This Commodity Exchange is a non-profit corporation with a membership system.
Members must be traders working in industries related to the sales, manufacturing, processing, etc., of commodities on the commodity exchange, and must meet the legally defined qualifications requirements. The members include FCMs (Future Commission Merchants) approved by the Minister of Agriculture, Forestry and Fisheries in accordance with the prescribed standards.
The FCMs, in addition to conducting their own transactions, may conduct consigned transactions from the general public, that is, they may conduct consignment-based business. Since the commodity exchange has a membership system, its supreme decision-making organization is the General Meeting of the Members. The operation of daily business is conducted by the Board of Directors, which serves as the executive body.
The Chairman and Directors are selected by the General Meeting of the Members. The executive body establishes standing committees, special committees, etc., to serve as the consultative bodies for daily business.The members of these committees are selected by the Board of Directors from the directors, the members, and persons of experience or academic standing, and are then assigned and commissioned by the Chairman of the Board. The organization as a whole, including the Secretariat, works to execute orderly and systematic market operations business, to provide guidance, supervision and other types of management to the members, and persons conducting commodities transactions, to develop and promote commodities, and to plan advertisement and enlightenment about these commodities.