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Kansai, Fukuoka commodities futures bourses sign merger accord.

OSAKA, Sept. 29 Kyodo

The Kansai Commodities Exchange and Fukuoka Futures Exchange signed an agreement Friday to merge.

The combination of the two bourses is expected to be formally completed Dec. 1 after the farm ministry approves their applications to merge in November, the two exchanges said.

The merger will be implemented under the arrangement that the Fukuoka Futures Exchange will be technically absorbed by the Kansai Commodities Exchange under relevant regulations.

The integrated bourse will assume the name of the Kansai Commodities Exchange with its headquarters' location to be registered as Osaka.

The Fukuoka Futures Exchange will transfer trading in corn futures and other financial products that have been listed on the bourse to the new bourse, while selling off its real estate holdings.

Kansai Commodities Exchange Chairman Makoto Iwamura said the move would enhance its competitive edge over rival bourses.

''The Fukuoka Commodities Exchange has a history dating back over 100 years and the Kansai Commodities Exchange has a history originating in the (Osaka's) Dojima rice bourse'' developed during the Edo period. ''We will continue our presence as western Japan's market, while making much of our tradition,'' he said.

The combination comes at a time when commodities exchanges across the nation are undergoing realignment.

In April, the Tokyo Grain Exchange merged with the commodities futures bourse in Yokohama. On Aug. 22, the Nagoya-based Central Japan Commodity Exchange signed a deal with the Osaka Mercantile Exchange to merge Jan. 1 next year.

These consolidation moves have reduced the number of commodities exchanges in Japan from seven as of April to four.
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Publication:Japan Weekly Monitor
Geographic Code:9JAPA
Date:Oct 2, 2006
Words:262
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