
The European Energy Exchange (EEX) will start offering Japan power average price options for the Tokyo and Kansai areas on February 3, 2025. The products will join EEX’s existing offering of futures for the two areas.
According to EEX’s statement, “the new instruments will be settled against the average of the JEPX spot prices for the Tokyo and Kansai market areas during the respective delivery month.” It will be the first time for EEX to offer average price options contracts for power.
“The Japanese power derivatives market has experienced exceptional growth since its launch on EEX in 2020. We believe that one of the reasons for this positive development is our commitment to collaborate closely with the local trading communities and authorities on all our markets, including Japan,” said EEX’s COO Steffen Koehler. “The new monthly options are introduced in response to trading participants’ demands and we will continue to work closely with them to further develop this market,” he continued.
The official announcement, first reported about this summer, comes just days after the Intercontinental Exchange (ICE) announced it started offering Japan power futures on its platform.
Power derivatives trading has been surging in Japan as retailers and other market players are increasingly more looking to hedge their positions. Japan power futures trading volume on EEX reached 28.9TWh in the first half of 2024, approximately 3.4 times the volume traded in the first half of 2023. In addition to EEX and ICE, TOCOM and CME offer Japan power futures trading as well. CME offers average price options, albeit only for the Tokyo area, too.