EEX to launch clearing for Japanese power futures

By Vera Eckert FRANKFURT (Reuters) - The European Energy Exchange (EEX) said it will launch its new trade registration service for Japanese power futures on Monday, expanding its presence in Asia. The first transactions are due to take place during the daytime in Japan and trading will transfer to EEX's European platforms at 0800 CET (0600 GMT), said Steffen Koehler, Chief Operating Officer. 'We are 48 hours away from taking another step into the Asian time zone as two-year preparations come to an end,' he said in an interview with Reuters.

Reuters May 16, 2020 00:06:34 IST
EEX to launch clearing for Japanese power futures

EEX to launch clearing for Japanese power futures

By Vera Eckert

FRANKFURT (Reuters) - The European Energy Exchange (EEX) said it will launch its new trade registration service for Japanese power futures on Monday, expanding its presence in Asia.

The first transactions are due to take place during the daytime in Japan and trading will transfer to EEX's European platforms at 0800 CET (0600 GMT), said Steffen Koehler, Chief Operating Officer.

"We are 48 hours away from taking another step into the Asian time zone as two-year preparations come to an end," he said in an interview with Reuters.

"We expect to have critical mass on the 18th or shortly thereafter to get the clearing offering off the ground."

Clearing services help companies involved in wholesaling, generation and distribution with their risk management, while opening new trading avenues for EEX's network of members, who include utilities, brokers, clearing banks and other intermediaries.

Japan had 1,020 terawatt hours (TWh) of power consumption in 2018, twice the size of Germany's and ranking fourth in the world after China, the United States and India according to researchers Enerdata.

The Japanese government opened the country's power market to more competition in the wake of the Fukushima nuclear disaster in 2011 by allowing new entrants, encouraging renewables and supporting market-based trading of power rather than bilateral sales by utilities.

"We bring the biggest distribution network to the table, that is a big advantage the regulators considered when they invited us into this market," said Koehler.

Europe opened its power markets gradually from the 1990s to develop price discovery, transparency and hedging instruments.

EEX, a subsidiary of Deutsche Boerse , provides power contracts trading and clearing services outside the bourse, over-the-counter (OTC), to help eliminate counterparty risks.

It has also become a big player in North American power markets through its subsidiary Nodal.

The offering in Japan will comprise the clearing of trades for weekly, monthly, quarterly, seasonal and annual delivery periods up to six years in advance.

Koehler said participating brokers included Enechain, Arraco, Amerex, Tullet Prebon, Icap, SSY Futures, Marex Spectron and TFS.

He also said that EEX would open an office in Tokyo in the summer, barring delays related to the coronavirus pandemic, to complement its Singapore operations.

(Reporting by Vera Eckert, editing by Susan Fenton)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Guinea president 'captured', govt dissolved, claim army putschists'; attack on presidential palace repulsed, say authorities
World

Guinea president 'captured', govt dissolved, claim army putschists'; attack on presidential palace repulsed, say authorities

Reports suggest that they captured President Alpha Conde and dissolved the government, bust the ground situation remains unclear

Cryptocurrency prices tumble and exchange trading falters as snags crop up
News & Analysis

Cryptocurrency prices tumble and exchange trading falters as snags crop up

NEW YORK (Reuters) -The price of cryptocurrencies plunged and crypto trading was delayed on Tuesday, a day in which El Salvador ran into snags as the first country to adopt bitcoin as legal tender. Shares of blockchain-related firms also fell as crypto stocks were hit by trading platform outages. But the major focus was on El Salvador, where the government had to temporarily unplug a digital wallet to cope with demand.

Ford poaches Apple's car project chief Doug Field
News & Analysis

Ford poaches Apple's car project chief Doug Field

By Joseph White and Sanjana Shivdas (Reuters) -The head of Apple Inc's car project, Doug Field, is going to work for Ford Motor Co to lead the automaker's advanced technology and embedded systems efforts, a hiring coup for Ford Chief Executive Jim Farley.