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Message: TOCOM

TOCOM

posted on Apr 04, 2008 07:37AM

Investors,

it appears that TOCOM is doing so much busines in the commodity sector, particularily on the gold exchange that it's computers crashed.

Here is a piece of the article.

TOKYO, April 4 (Reuters) - The Tokyo Commodity Exchange said it would boost the capacity for data it provides to vendors such as Reuters, after price information for a key gold futures contract stopped updating on Thursday.

The problem was resolved by the opening on Friday, but Japan's biggest commodity exchange said it would increase its data capacity this the weekend for gold as well as rubber, gasoline and other commodities contracts.

"This is the first case ever," said Seiki Ichimura, an exchange spokesman. "Gold is the most liquid commodity contract here, and that's why it was affected."

What also gets little press here in the West is the fact that on the TOCOM the price of gold has "limit up" a number of times over the last year. That is, trading was shut down because the price of gold had reached it's highest aloud daily trading limit. The exchanges place % up and down limits in order to supposedly restore calm to a volatile market.

Of course as any investor should know, the more volume and volatility there is in a market. The greater the opportunity there is to make profits.

F.F. 

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