Japan power futures trading hits 3 TWh on March 2 on geopolitical risk

The Singapore-based broker said Monday marked the largest single day volume ever recorded in Japan’s power futures market, with approximately 3 TWh traded across the European Energy Exchange (EEX) and Tokyo Commodity Exchange (TOCOM).

Vanir Global Markets in a social media post on Tuesday said the surge in trading activity was driven by escalating geopolitical tensions in the Middle East and renewed focus on global energy supply security.

“As fuel markets repriced and volatility lifted across the broader complex, Japan power futures responded in step.”

The energy broker said record turnover during a period of global stress reflects the continued development of liquidity, transparency and price discovery in Japan’s derivatives market.

“Japan power is increasingly established as a mature, responsive and globally connected market within the international energy landscape. Vanir Global Markets facilitated over 60% of futures volume on Monday, reinforcing our central role in supporting liquidity when it matters most,” the Singapore broker said.

Meanwhile, data from EEX showed 52,824 MWh traded in Tokyo area power futures with March expiry trading on Monday (see Chart 1).

Chart 1: Tokyo area power futures with March expiry on EEX

Source: EEX

Deutsche Boerse Group-owned EEX reported last month that global power markets reached a total volume of 1,266.3 Terrawatt hours (TWh) in January, up 7% year on year.

Japan Electric Power Exchange (JEPX) in February said Japanese Exchange Group’s (JPX) TOCOM venue will now bid equivalent volume into the JEPX day-ahead market, enabling a one-stop service covering both futures and physical transactions.