ICE expands global energy offering with launch of Japanese power futures

Intercontinental Exchange announced the latest addition to its global energy offering with the launch of Japanese Power Futures. ICE has launched four Japanese Power Financial Baseload and Peakload Futures covering the Tokyo and Kansai areas respectively, allowing market participants to manage exposure to the day-ahead auction price of the Japanese Electric Power Exchange or JEPX, for these areas. “By offering Japanese Power Futures on a single platform alongside our natural gas, coal, oil, clean energy attributes and carbon contracts, ICE is providing customers with a critical edge in navigating energy markets,” said Gordon Bennett, Managing Director of Utility Markets at ICE. “Secondary fuels including electricity are produced through the conversion of primary energy sources like natural gas, coal and oil, and the price of electricity is derived from the interaction of these competing input fuels, all of which trade on ICE. Natural gas and coal make up the majority of Japan’s electricity generation and through trading of these contracts on ICE, customers benefit from improved price dissemination.” ICE’s Japanese Power Financial Futures will be offered in monthly, quarterly and seasonal contracts as well as a Calendar and Fiscal Year contract. In addition, customers can trade spreads between Tokyo and Kansai to manage positions and price differences across these regions, as well as manage exposure to regional price risks.