CME Group to Launch Six New Japanese Energy Futures Contracts on February 8
CME Group, a leader in the derivatives marketplace, announced the introduction of four new Japanese electricity futures and two new LNG futures contracts scheduled for trading on February 8, 2021, pending regulatory approval. These new contracts enhance CME Group's offerings in Japan, addressing the needs of a fully liberalized wholesale electricity market. The electricity futures will aid in risk management for traders, while the LNG contracts allow for trading spreads between LNG and electricity futures. Regulated under NYMEX rules, these products are aimed at optimizing price risk management.
- Launch of four new Japanese electricity futures contracts enhances offerings in a liberalized market.
- Introduction of two new LNG futures contracts provides tools for price risk management.
- Products are expected to fill gaps in the current Japanese electricity futures market.
- None.
CHICAGO and TOKYO, Jan. 6, 2021 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced four new Japanese electricity futures contracts and two new LNG futures contracts will be available for trading on February 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. We are pleased to launch these new futures contracts that offer participants an efficient risk management tool," said Izumi Kazuhara, CME Group Head of Japan. "At the same time, the launch of the two new yen-denominated LNG contracts will be relevant for market participants who want to trade the spread between LNG and electricity futures."
The new electricity contracts include: Japanese power (Day-Ahead) Tokyo base-load futures, Japanese power (Day-Ahead) Tokyo peak-load futures, Japanese power (Day-Ahead) Kansai base-load futures, and Japanese power (Day-Ahead) Kansai peak-load futures. They are financially-settled in Japanese yen using the arithmetic average of the 30-minute Spot Market (Day-Ahead) prices published by the Japan Wholesale Power Exchange (JEPX) for the relevant region (Tokyo or Kansai) based on base/peak loads over the period defined by the contract.
The new LNG contracts will be denominated in Japanese yen and include the Japan/Korea Market (Platts) futures and the Japan Crude Cocktail (Detailed) futures. The former is a financially-settled contract based on the DES Japan/Korea daily LNG marker (JKM) by Platts, while the latter is a financially settled contract based on the average price of nine custom-cleared crude oils reported by the Japan Ministry of Finance and Customs.
CME Group's Japanese electricity and LNG futures contracts will be available on CME Globex, for submission for clearing through CME ClearPort, and will be listed with and subject to the rules and regulations of NYMEX. For more information on the former, please visit https://www.cmegroup.com/trading/energy/global-power-futures.html and for more information on the latter, please visit https://www.cmegroup.com/trading/energy/global-natural-gas-futures.html.
As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and, E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec, EBS, TriOptima, and Traiana are trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB, and Traiana, Inc., respectively. Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc. All other trademarks are the property of their respective owners.
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SOURCE CME Group
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