The Tokyo Commodity Exchange announced today 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 on March 27th and it was announced in the official gazette dated April 25th.
The new electricity contracts are slated to commence trading on September 17th. The Exchange will simultaneously rename the Oil Market the “Energy Market”, with electricity futures one component.
Takamichi Hamada, CEO and 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”.
Electricity Futures Contract Specifications
Contract Area | East Area Base Load | West Area Base Load | East Area Peak | West Area Peak |
Type of Trading | Cash Settled Futures | |||
Underlying | Average Price of JEPX*1 Spot Market (Day-Ahead) for the Tokyo Area Base Load Price (0:00~24:00) | Average Price of JEPX*1 Spot Market (Day-Ahead) for the Kansai Area Base Load Price (0:00~24:00) | Average Price of JEPX *1 Spot Market(Day-Ahead) for the Tokyo Area Peak Load Price (8:00~20:00) | Average Price of JEPX*1 Spot Market(Day-Ahead) for the Kansai Area Peak Load Price (8:00~20:00) |
Contract Unit
Contract base |
“Monthly Contract” Calendar days in month × 24hrs/day × 0.1MWh |
“Monthly Contract” Calendar days in month × 24hrs/day × 0.1MWh |
“Monthly contract” Weekdays in month × (specified by TOCOM) × 12hrs/day × 0.1MWh |
“Monthly contract” Weekdays in month × (specified by TOCOM) × 12hrs/day × 0.1MWh |
Minimum Tick Size | JPY 0.01 (per kWh) | |||
Final Settlement Price | JEPX Spot Market (Day-Ahead) Tokyo Area Base Load monthly average price | JEPX Spot Market (Day-Ahead) Kansai Area Base Load monthly average price | JEPX Spot Market (Day-Ahead) Tokyo Area Peak Load monthly average price | JEPX Spot Market (Day-Ahead) Kansai Area Peak Load monthly average price |
Contract Listed |
Nearest 15 Months |
|||
The business day prior to the last day of the month | The business day prior to the last day of the month | The business day prior to the last weekday of each month | The business day prior to the last weekday of each month | |
Last Trading Day | Business day following the last trading day | |||
Final Settlement Day | First business day of the following month | |||
Trading Hours |
Day Session: 8:45 to 15:15 / Evening Session: 16:30 to 19:00 *Single price auction is to be executed 4 times a day – opening and closing of day session and evening session. Trading method will be continuous trading during these sessions. |