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ICE Expands Global Energy Offering with the Launch of Japanese Power Futures

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Intercontinental Exchange (NYSE:ICE) has expanded its global energy portfolio by launching Japanese Power Futures. The offering includes four Financial Baseload and Peakload Futures covering Tokyo and Kansai areas, enabling market participants to manage exposure to the Japanese Electric Power Exchange (JEPX) day-ahead auction prices.

The futures will be available in monthly, quarterly, seasonal, Calendar, and Fiscal Year contracts. Traders can also access spreads between Tokyo and Kansai regions. This addition complements ICE's existing energy markets, which include benchmark products like JKM LNG, TTF, Henry Hub, and Newcastle Coal Futures. ICE reports a 20% year-over-year increase in open interest across its energy markets.

Intercontinental Exchange (NYSE:ICE) ha ampliato il suo portafoglio globale di energie lanciando i Contratti Futures sul Potere Giapponese. L'offerta comprende quattro Contratti Futures finanziari baseload e peakload che coprono le aree di Tokyo e Kansai, consentendo ai partecipanti di gestire l'esposizione ai prezzi delle aste giornaliere della Borsa Elettrica Giapponese (JEPX).

I futures saranno disponibili in contratti mensili, trimestrali, stagionali, annuali e fiscali. I trader possono anche accedere agli spread tra le regioni di Tokyo e Kansai. Questa aggiunta integra i mercati energetici esistenti di ICE, che includono prodotti di riferimento come JKM LNG, TTF, Henry Hub e Contratti Futures sul Carbone di Newcastle. ICE riporta un aumento del 20% anno su anno degli interessi aperti nei suoi mercati energetici.

Intercontinental Exchange (NYSE:ICE) ha ampliado su cartera global de energía lanzando Futuros de Energía Japonesa. La oferta incluye cuatro Futuros financieros baseload y peakload que cubren las áreas de Tokio y Kansai, permitiendo a los participantes del mercado gestionar su exposición a los precios de las subastas diarias de la Bolsa de Electricidad de Japón (JEPX).

Los futuros estarán disponibles en contratos mensuales, trimestrales, estacionales, anuales y fiscales. Los traders también pueden acceder a los spreads entre las regiones de Tokio y Kansai. Esta adición complementa los mercados energéticos existentes de ICE, que incluyen productos de referencia como JKM LNG, TTF, Henry Hub y Futuros de Carbón de Newcastle. ICE informa un aumento del 20% interanual en el interés abierto en sus mercados energéticos.

인터컨티넨탈 익스체인지 (NYSE:ICE)일본 전력 선물을 출시하여 글로벌 에너지 포트폴리오를 확장했습니다. 이 상품에는 도쿄와 간사이 지역을 포괄하는 네 가지 금융 기본 부하 및 피크 부하 선물이 포함되어 있어 시장 참가자들이 일본 전력 거래소(JEPX)의 일일 경매 가격에 대한 노출을 관리할 수 있습니다.

선물 계약은 월별, 분기별, 계절별, 일정 연도 및 회계 연도로 제공됩니다. 트레이더는 또한 도쿄와 간사이 지역 간의 스프레드에 접근할 수 있습니다. 이 추가는 JKM LNG, TTF, 헨리 허브 및 뉴캐슬 석탄 선물과 같은 벤치마크 상품을 포함하는 ICE의 기존 에너지 시장을 보완합니다. ICE는 에너지 시장 전반에 걸쳐 오픈 이자 20% 증가를 보고하고 있습니다.

Intercontinental Exchange (NYSE:ICE) a étendu son portefeuille énergétique mondial en lançant des Contrats à terme sur l'énergie japonaise. L'offre comprend quatre contrats à terme financiers baseload et peakload couvrant les régions de Tokyo et de Kansai, permettant aux participants du marché de gérer leur exposition aux prix des enchères quotidiennes de la Bourse de l'Électricité du Japon (JEPX).

Les contrats à terme seront disponibles en contrats mensuels, trimestriels, saisonniers, calendaires et fiscaux. Les traders peuvent également accéder aux spreads entre les régions de Tokyo et de Kansai. Cet ajout complète les marchés énergétiques existants d'ICE, qui incluent des produits de référence tels que JKM LNG, TTF, Henry Hub et les contrats à terme sur le charbon de Newcastle. ICE reporte une augmentation de 20 % de l'intérêt ouvert dans ses marchés énergétiques par rapport à l'année précédente.

Intercontinental Exchange (NYSE:ICE) hat sein globales Energieportfolio durch die Einführung von Japanischen Stromfutures erweitert. Das Angebot umfasst vier finanzielle Baseload- und Peakload-Futures, die die Regionen Tokio und Kansai abdecken und es den Marktteilnehmern ermöglichen, ihre Exponierung gegenüber den Tagesauktionspreisen der Japan Electric Power Exchange (JEPX) zu verwalten.

Die Futures werden in monatlichen, vierteljährlichen, saisonalen, Kalender- und Geschäftsjahresverträgen verfügbar sein. Händler haben auch Zugang zu den Spreads zwischen den Regionen Tokio und Kansai. Diese Ergänzung rundet ICEs bestehende Energiemärkte ab, die Benchmarkprodukte wie JKM LNG, TTF, Henry Hub und Newcastle Coal Futures umfassen. ICE berichtet von einem Anstieg des Open Interest in seinen Energiemärkten um 20 % im Jahresvergleich.

Positive
  • Launch of new Japanese Power Futures products expanding ICE's global energy offering
  • 20% year-over-year increase in open interest across ICE's energy markets
  • Strategic integration with existing energy products allowing comprehensive trading opportunities
Negative
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Insights

The launch of Japanese Power Futures represents a significant strategic expansion for ICE in the Asian energy derivatives market. This new offering addresses a important gap by providing hedging tools for Japan's electricity market, which is the world's fourth-largest power market. The inclusion of both baseload and peakload futures for Tokyo and Kansai regions enables sophisticated risk management strategies. With 20% year-over-year growth in open interest across ICE's energy markets, this launch is well-timed to capitalize on increasing market demand. The integration with ICE's existing energy products creates a comprehensive trading ecosystem, particularly valuable given Japan's heavy reliance on imported LNG and coal for power generation. The ability to trade regional spreads adds another dimension of trading opportunities for market participants.

This launch is strategically important as it connects Japan's power markets with global energy commodities trading. The correlation between electricity prices and primary fuel sources like LNG and coal makes these futures particularly valuable for cross-commodity hedging strategies. The offering of multiple contract durations - monthly, quarterly, seasonal and yearly - provides flexibility for different hedging needs. The Tokyo-Kansai spread trading capability is especially significant given the regional price disparities in Japan's electricity market. This development enhances price transparency and risk management capabilities in a market that has historically been less accessible to international traders. The integration with ICE's existing energy portfolio creates a one-stop platform for comprehensive energy trading strategies.

JAPAN & LONDON & NEW YORK & AMSTERDAM--(BUSINESS WIRE)-- Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, today 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 (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.

ICE’s global energy markets are the most liquid in the world to trade energy derivatives. Japanese Power futures will join ICE’s global energy offering which includes the benchmark price for natural gas in North-East Asia JKM LNG (Platts), the global benchmark TTF, the U.S. benchmark Henry Hub and globalCOAL Newcastle Coal Futures, as well as ICE’s complex of over 800 oil and refined products including ICE Brent. Open interest across ICE’s energy markets is up 20% year-over-year.

For more information, email sales-utilitymarkets@ice.com.

About Intercontinental Exchange

Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE’s futures, equity, and options exchanges – including the New York Stock Exchange – and clearing houses help people invest, raise capital and manage risk. We offer some of the world’s largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology, we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines and automates industries to connect our customers to opportunity.

Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).”

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 – Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 8, 2024.

Category: EXCHANGES

ICE-CORP

Source: Intercontinental Exchange

ICE Media:

Jess Tatham

jess.tatham@ice.com

+44 7377 947136



ICE Investor:

Katia Gonzalez

katia.gonzalez@ice.com

(678) 981-3882

Source: Intercontinental Exchange

FAQ

What new futures contracts did ICE launch in Japan?

ICE launched four Japanese Power Financial Baseload and Peakload Futures covering the Tokyo and Kansai areas, allowing traders to manage exposure to JEPX day-ahead auction prices.

How much has ICE's energy markets open interest grown year-over-year?

ICE reported that open interest across its energy markets has increased by 20% year-over-year.

What contract types are available for ICE's Japanese Power Futures?

ICE's Japanese Power Futures are offered in monthly, quarterly, seasonal contracts, as well as Calendar and Fiscal Year contracts.

How do ICE's Japanese Power Futures integrate with other energy products?

The futures trade on a single platform alongside ICE's natural gas, coal, oil, clean energy attributes, and carbon contracts, allowing customers to manage comprehensive energy market exposure.

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