MUFG Bank to commence power futures trade execution
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MUFG Bank to commence power futures trade execution 30 August 2024Japan Reporter: Daniel Tison
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MUFG Bank has obtained approval for participant qualifications in the energy market from the Tokyo Commodity Exchange (TOCOM) and the Japan Securities Clearing Corporation.
The Tokyo-based bank is preparing to enter the power futures trade execution and clearing services at TOCOM in October.
It aims to enhance price hedging functions in the overall power trading market by increasing trading volume in the power futures market.
In addition, MUFG Bank has also concluded an agreement with eClear, a subsidiary of enechain, to invest in a 49 per cent stake in the VAT and customs clearance solution.
Operating Japan’s major power hedge wholesale trading marketplace, eClear provides services to reduce counterparty risk in wholesale power spot trading.
Through this investment, MUFG aims to expand eClear’s transactions and functions and provide more comprehensive services to customers in power spot trading and other transactions.
By entering the power futures and spot markets, the bank aims to enhance price predictability and hedging functions in Japan’s power trading and diversify services provided by retail electricity businesses.
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