Autopsy of a market failure:The Dojima Japanese rice futures in the early 21st century

We investigate the Osaka Dojima Exchange (ODEX) Japanese rice futures market to identify the reasons underlying its failure. In 2021 the Japanese government did not authorize permanent listing of the contract citing the limited participation of handlers and ODEX decided to terminate trading. We evaluate a wide range of market characteristics that influence the success of a commodity futures market. We conclude that the spot market did not meet the requirements for the futures market to be successful. The futures market was further unable to provide some of its most relevant functions effectively. The use of the futures contracts essentially as a forward contract did not facilitate the success of the market either. Coupled with all these issues, political opposition and regulatory uncertainty led to the failure of the market by mid-2021.

Name thesis:degree_name

M.S.

Level thesis:degree_level

Thesis

Discipline thesis:degree_discipline

Agricultural & Applied Econ

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2023

Author dc:creator

• Yamamoto, Shuhei

Contributors dc:contributor

• Serra, Teresa
• Janzen, Joe

• The Failure Of Futures Market
• Rice Futures In Japan
• Batch And Continuous Trading

Statement dc:rights

• Copyright 2023 Shuhei Yamamoto

Language dc:language

en, eng

Handle dc:identifier

https://hdl.handle.net/2142/120233

OAI record oai:identifier

https://www.ideals.illinois.edu/oai-pmh?verb=GetRecord&metadataPrefix=etdms&identifier=oai%3Awww.ideals.illinois.edu%3A2142%2F120233