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.
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”.