Tokyo to launch electricity futures

The Tokyo Commodity Exchange has obtained regulatory approval for electricity futures. TOCOM applied for a trial listing for futures contracts with the Ministry of Economy, Trade and Industry and the Ministry of Agriculture, Forestry and Fisheries in March.

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The new electricity contracts are slated to commence trading in September. The Exchange will simultaneously rename the Oil Market the “Energy Market”, with electricity futures one component.

Takamichi Hamada, CEO/President of TOCOM commented, “We intend to serve as a public utility service supporting the basis for Japan’s energy policy and carry out the public mission of a regulated exchange operator with transparent benchmark prices and opportunities for hedging on the new electricity futures market”.