January 30, 2020 / 12:18 PM / a month ago

EEX to launch clearing for Japanese power futures on May 18

FRANKFURT, Jan 30 (Reuters) - The EEX European energy bourse said on Thursday it planned to offer clearing services for Japanese power futures from May 18, 2020, as it expands in wholesale markets.

The start date was announced at the EEX Group Japan Power Conference in Tokyo after a two-year consultation process, EEX said in a statement.

Pending regulatory approval in Europe, it will be EEX’s first tailor-made power futures service in Asia, adding to its 20, mostly European, power derivatives markets.

“With this offer, we aim to support the further development of the Japanese power market by sharing our experience and working hand in hand with the industry in Japan and with our international participants,” said Chief Operating Officer Steffen Koehler.

He said the clearing service aimed to help companies involved in wholesaling, generation and distribution with their risk management, while opening avenues for the EEX network of trading members, access providers, brokers and clearing banks.

Japan’s government has promoted competition in the country’s regionalised power market since the Fukushima nuclear crisis in 2011 by allowing new entrants, encouraging renewables, and supporting free market trading alongside bilateral sales by utilities to customers.

Hedging tools offered by power forwards markets worldwide allow players to benefit from more transparency, security and liquidity.

While EEX is firmly routed in its core European markets, its entrance into North America and Asia is beginning to allow global price arbitrage as well as clearing and registry services across time zones. (Reporting by Vera Eckert, editing by Kirsten Donovan)

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