CME Group is planning to make four new Japanese electricity futures contracts and two new LNG futures contracts available for trading on Feb. 8, 2021, pending regulatory review.
The four new electricity futures contracts expand CME Group's already robust suite of global power futures and options and fill a gap in the Japanese electricity futures market, providing traders a robust platform for block-trade submission to CME Clearing. The two new LNG contracts provide Japanese power producers a more efficient tool to manage their price risk.
“The Japanese wholesale electricity market is now fully liberalized with hundreds of retail firms and producers, creating an opportunity for a more robust derivatives market alongside it,” said Izumi Kazuhara, CME Group Head of Japan. “We are pleased to launch these new futures contracts that offer participants an efficient risk management tool.”
The new electricity contracts include the Japanese power (Day-Ahead) Tokyo