Japanese Turning Cold Shoulder To Globex: Report
CHICAGO (AP) _ The Japanese government is pressuring Japanese financial firms not to participate in an automated international futures trading network being developed by the Chicago Mercantile Exchange, according to a published report.
Japan’s Ministry of Finance is afraid that when the Merc system, called Globex, goes on line later this year, Japanese firms will forsake Tokyo’s fledgling futures markets to trade financial futures on Globex, the Chicago Tribune reported in today’s editions.
″It’s another example of the mighty hammer of Japanese bureaucracy crashing down on the concept of free trade,″ said a Tokyo-based U.S trade official who was not identified in the Tribune story.
Globex, designed to facilitate global, 24-hour futures trading, would be weakened without the participation of the Japanese, who opened their own futures markets in June. The Merc has been wooing Japanese business.
Nick Ronalds, deputy managing director of the Merc’s Tokyo office, said the Merc had heard nothing official from the Japanese regarding Globex.
″As far as we’re concerned, the Japanese are still studying the matter,″ Ronalds told the Tribune. ″We’ve provided them with all the information and we are still waiting for their response.″