He Exchange is a non-profit organization

Established under the authorization of the minister of Agriculture, Forestry and Fisheries. As a membership organization, where a member firm has an established business affiliation with the listed commodity, the Members’ General Meeting is the highest organ at the Exchange. Day-to-day businesses at the Exchange are attended by the Board of directors, headed by the Chairman, all elected by the members at the Members’ General Meeting. For advisory purposes, permanent and ad hoc committees are instituted under the Board.

The Exchange lists Futures Trading and Options Trading. Futures Trading is a contract to buy or sell an underlying commodity at a specified price, on a specified future date. At the specified future date, the seller must deliver the underlying commodity to the buyer to settle the transaction and the buyer is required to pay the specified price to receive the underlying commodity. However, before the specified future date, the futures contract can be closed out or offset; that is, prior to delivery, the buyer offsets futures contract by selling the contract and the seller closes out futures contract by buying back the contract. A contract can be settled with a cash payment in the amount of profit or loss, i.e. the price difference between initiating and canceling contract. This is called cash settlement and is one of the unique features of futures trading. Settlement of most futures contract is made by cash settlement rather than the physical delivery of commodity.