Brokers, Hedgers Among Pioneers in Japan Power Futures Debut
- Two foreign companies to join Tocom power market as members
- Tocom president expects incumbent utilities to join later
Photographer: Tomohiro Ohsumi/Bloomberg
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More than 30 companies will be eligible to start futures trading in one of the world’s biggest power markets when the Tokyo Commodity Exchange debuts Japan electricity contracts this month, including at least two foreign firms.
Nine are brokers and more than 20 are hedgers, Tocom President Takamichi Hamada said in an interview Tuesday in Tokyo, declining to provide names. While incumbent utilities including Tepco aren’t participating yet, they will probably join later via brokers because they need to hedge the risk of selling wholesale power below-cost, he said.