Japan TOCOM posts loss;expects to be in black in 2 yrs

TOKYO May 27 (Reuters) - Tokyo Commodity Exchange Inc posted an operating loss of almost $13 million in the financial year that ended in March, its second straight year in the red due to costs related to the launch of a new trading system.

But TOCOM's plan to eke out profits in the year starting in April 2011 remains on track, Nagao Umetaro, the bourse's chief operating officer, said at a regular news conference on Thursday.

"Posting losses for three years in a row is in line with our original plans. We're aiming to turn things around in the next business year," he said.

Operating losses at Japan's biggest commodity exchange stood at 1.14 billion yen ($12.7 million) in 2009/2010, when costs related to the replacement of its trading platform almost doubled to 1.8 billion yen from a year earlier.

In 2008/2009, the exchange posted an operating loss of 236 million yen, its first ever loss.

TOCOM, which deals in gold, platinum, rubber and other industrial commodity futures and options, launched an upgraded, faster trading system in May 2009 and extended trading hours in a bid to lure more participants.

The exchange and some of its peers, including the Central Japan Commodity Exchange, had been struggling to boost trade in the wake of the global financial crisis.

But there are signs that trade is recovering on TOCOM, with precious metals taking the lead.

Trading volume in April rose to 120,612 contracts a day on average from 117,300 a year earlier. The company is aiming to boost this to 170,000 contracts a day in March 2011. ($1=89.94 Yen) (Reporting by Risa Maeda; Editing by Joseph Radford)