Brokerage house, Daiwa, has announced plans to enter the Tokyo Commodity Exchange (TOCOM) next year.

Japan's second-largest brokerage house is considering the move as a way to take on a more active role in the commodities sector and is looking specifically at the precious metals market.

"If we are to take part in physical trading in commodities, it would be crude oil and precious metals," explained Daiwa Securities president Shigeharu Suzuki.

The announcement has co-incided with a significant jump in platinum and gold futures in Tokyo, with Tokyo Commodity Exchange platinum futures jumping by 2.4 per cent and palladium increasing by almost 6 per cent.

Daiwa has announced this planned move into the market after rival Nomura Securities, which is Japan's biggest brokerage house, established a section specialising in commodities earlier this year.

However, the difference between the two announcements is that Daiwa is aiming to actively trade in the commodities market, something Nomura has no plans to do at present.

Ÿ Adfero Ltd