overview of tocom electricity market...delivery – retailers bill customers. (similar to ercot)...
TRANSCRIPT
Copyright 2019 Tokyo Commodity Exchange, Inc. All rights reserved.
Overview of TOCOM Electricity Market
September 2019
Copyright 2019 Tokyo Commodity Exchange, Inc. All rights reserved.
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Source: “Key World Energy Statistics 2017”, IEA
Japan is the world’s fourth-largest power consumer with electricity sales of JPY 14.5
Trillion(USD 130 Billion)in FY2017. Japan is the world’s largest liberalized electricity
market under a single regulator.
Source: “Japan’s Energy White Paper 2017”, METI
Electricity Market in Japan
Japan
Copyright 2019 Tokyo Commodity Exchange, Inc. All rights reserved.
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Great East Japan Earthquake
2019 1995 2000 2003 2008 2004, 2005 2015 2016 2020 2011 2013
Electricity market liberalization began in 1995 for high voltage customers. The retail market opened to
competition on April 1st, 2016 for all customers. Utilities were separated into “Generation”, “T&D”, and
“Retail” business units.
Utility generator must supply the wholesale markets and compete. Utility T&D is for grid management and
delivery – Retailers bill customers. (similar to ERCOT)
Opening of wholesale market to Independent Power Producers (IPPs)
Liberalization of electricity retail
supply for extra-high voltage users
Establishment of wholesale power exchange (JEPX)
Liberalize electricity retail supply for
high voltage users
The hour ahead market launched
at JEPX
Electricity Market Reform
Establishment of OCCTO
(ISO)
Liberalization of retail supply for low voltage users “Full Liberalization”
Establishment of Market Surveillance
Commission (EMSC)
Utility Reform Implementation
Completed
Transitional Period of Regulated Retail Tariffs
Electricity Business Act Laws Passed by Diet
The liberalization
Launch of TOCOM
Electricity Futures Market
Trading volume on JEPX (Japan Electric Power Exchange) has increased significantly since the market was full
deregulated. JEPX trading volume now accounts for 30% of the total electricity demand and is expected to
double. JEPX is supplying 72% of electricity retailer demand.
Price fluctuation hedging needs at JEPX has increased. Supported by Japanese government policy, TOCOM
will launch Electricity Futures, which are based on JEPX prices, on September 17th, 2019.
Sep 17th
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East Area
Base Load
West Area
Base Load
East Area
Peak Load
West Area
Peak Load
Type of Trading Cash Settled Monthly Futures Contract
Underlying
Average Price of JEPX Spot
Market(Day-Ahead) for the
Tokyo area Base Load price
(0:00~24:00)
Average Price of JEPX Spot
Market(Day-Ahead) for the
Kansai area Base Load price
(0:00~24:00)
Average Price of JEPX Spot
Market(Day-Ahead) for the
Tokyo area Peak Load price
(8:00~20:00)
Average Price of JEPX Spot
Market(Day-Ahead) for the
Kansai area Peak Load price
(8:00~20:00)
Contract Unit
Contract base size :
100KWh
Calendar days in month ×
24 hours × 100KWh
e.g. Nov 2019 contract =
72,000KWh = 30 x 24 x 100
Calendar days in month ×
24 hours × 100KWh
e.g. Nov 2019 contract =
72,000KWh = 30 x 24 x 100
Weekdays in month (*) x
12 hours × 100KWh
e.g. Nov 2019 contract =
24,000KWh = 20 x 12 x 100
Weekdays in month (*) x
12 hours × 100KWh
e.g. Nov 2019 contract =
24,000KWh = 20 x 12 x 100
Price Increment JPY 0.01 per KWh
Final Settlement
Price
JEPX Spot Market (Day
Ahead) Tokyo Area Base
Load monthly average price
JEPX Spot Market (Day
Ahead) Kansai Area Base
Load monthly average price
JEPX Spot Market (Day Ahead)
Tokyo Area Peak Load
monthly average price
JEPX Spot Market (Day Ahead)
Kansai Area Peak Load
monthly average price
Contracts Listed Nearest 15 Months
Last Trading Day The business day prior to the
last day of the month
The business day prior to
the last day of the month
The business day prior to the
last weekday of each month
The business day prior to the
last weekday of each month
First Trading Day Business day following the last trading day
Final Settlement
Day First business day of the following month
TOCOM Electricity Futures Market - Contract Specifications -
(*) Weekday = business day prescribed in Article 7 of Market Rules exclude the day separately specified by the Exchange.
(In principle, “Weekdays” = “Business days” – “deemed holidays specified by the Exchange” )
Copyright 2019 Tokyo Commodity Exchange, Inc. All rights reserved.
5
East Area
Base Load
West Area
Base Load
East Area
Peak Load
West Area
Peak Load
Trading Hours Day Session: 8:45 to 15:15
Night Session: 16:30 to 19:00
Margin Calculated based on SPAN margin
Position Limit
(Members) *
In Net per each contract month
10,000 lots
(around 744,000MWh for the
month with 31 days)
10,000 lots
(around 744,000MWh for the
month with 31 days)
14,000 lots
(around 336,000MWh for the
month with 20 weekdays)
14,000 lots
(around 336,000MWh for the
month with 20 weekdays)
Position Limit
(Customers) *
In Net per each contract month
5,000 lots
(around 372,000MWh for the
month with 31 days)
5,000 lots
(around 372,000MWh for the
month with 31 days)
7,000 lots
(around 168,000MWh for the
month with 20 weekdays)
7,000 lots
(around 168,000MWh for the
month with 20 weekdays)
SCO orders
Inter-commodity Spread Orders between the same contract
months base load
in East area and West area will be available
(SCO Price = East – West)
Inter-commodity Spread Orders between the same contract
months of peak load
in East area and West area will be available
(SCO Price = East – West)
* Electricity Utility Companies may exceed position limits with hedge that have been approved by the Exchange.
TOCOM Electricity Futures Market - Contract Specifications -
Copyright 2019 Tokyo Commodity Exchange, Inc. All rights reserved.
6
East Area / West Area Base Load Electricity
Contract Month First Trading Day Last Trading Day Final Settlement Day Contract Unit No. of days
Sep 2019 Sep 17, 2019 Sep 27, 2019 Oct 1, 2019 72,000 30
Oct 2019 Sep 17, 2019 Oct 30, 2019 Nov 1, 2019 74,400 31
Nov 2019 Sep 17, 2019 Nov 29, 2019 Dec 2, 2019 72,000 30
Dec 2019 Sep 17, 2019 Dec 30, 2019 Jan 6, 2020 74,400 31
Jan 2020 Sep 17, 2019 Jan 30, 2020 Feb 3, 2020 74,400 31
Feb 2020 Sep 17, 2019 Feb 28, 2020 Mar 2, 2020 69,600 29
Mar 2020 Sep 17, 2019 Mar 30, 2020 Apr 1, 2020 74,400 31
Apr 2020 Sep 17, 2019 Apr 28, 2020 May 1, 2020 72,000 30
May 2020 Sep 17, 2019 May 29, 2020 Jun 1, 2020 74,400 31
Jun 2020 Sep 17, 2019 Jun 29, 2020 Jul 1, 2020 72,000 30
Jul 2020 Sep 17, 2019 Jul 30, 2020 Aug 3, 2020 74,400 31
Aug 2020 Sep 17, 2019 Aug 28, 2020 Sep 1, 2020 74,400 31
Sep 2020 Sep 17, 2019 Sep 29, 2020 Oct 1, 2020 72,000 30
Oct 2020 Sep 17, 2019 Oct 30, 2020 Nov 2, 2020 74,400 31
Nov 2020 Sep 17, 2019 Nov 27, 2020 Dec 1, 2020 72,000 30
Dec 2020 Sep 30, 2019 Dec 30, 2020 Jan 4, 2021 74,400 31
Jan 2021 Oct 31, 2019 Jan 29, 2021 Feb 1, 2021 74,400 31
Feb 2021 Dec 2, 2019 Feb 26, 2021 Mar 1, 2021 67,200 28
Mar 2021 Jan 6, 2020 Mar 30, 2021 Apr 1, 2021 74,400 31
TOCOM Electricity Futures Market - Contract Month -
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East Area / West Area Peak Load Electricity
Contract Month First Trading Day Last Trading Day Final Settlement
Day Contract Unit
No. of
Weekdays
Deemed
Holidays
Sep 2019 Sep 17, 2019 Sep 27, 2019 Oct 1, 2019 22,800 19
Oct 2019 Sep 17, 2019 Oct 30, 2019 Nov 1, 2019 26,400 22 (*)
Nov 2019 Sep 17, 2019 Nov 28, 2019 Dec 2, 2019 24,000 20
Dec 2019 Sep 17, 2019 Dec 26, 2019 Jan 6, 2020 24,000 20 Dec.30,31
Jan 2020 Sep 17, 2019 Jan 30, 2020 Feb 3, 2020 22,800 19 Jan.2,3
Feb 2020 Sep 17, 2019 Feb 27, 2020 Mar 2, 2020 21,600 18
Mar 2020 Sep 17, 2019 Mar 30, 2020 Apr 1, 2020 25,200 21
Apr 2020 Sep 17, 2019 Apr 27, 2020 May 1, 2020 24,000 20 Apr.30
May 2020 Sep 17, 2019 May 28, 2020 Jun 1, 2020 20,400 17 May 1
Jun 2020 Sep 17, 2019 Jun 29, 2020 Jul 1, 2020 26,400 22
Jul 2020 Sep 17, 2019 Jul 30, 2020 Aug 3, 2020 25,200 21
Aug 2020 Sep 17, 2019 Aug 28, 2020 Sep 1, 2020 24,000 20
Sep 2020 Sep 17, 2019 Sep 29, 2020 Oct 1, 2020 24,000 20
Oct 2020 Sep 17, 2019 Oct 29, 2020 Nov 2, 2020 26,400 22
Nov 2020 Sep 17, 2019 Nov 27, 2020 Dec 1, 2020 22,800 19
Dec 2020 Sep 30, 2019 Dec 28, 2020 Jan 4, 2021 25,200 21 Dec.30,31
Jan 2021 Oct 31, 2019 Jan 28, 2021 Feb 1, 2021 22,800 19
Feb 2021 Nov 29, 2019 Feb 25, 2021 Mar 1, 2021 21,600 18
Mar 2021 Dec 27, 2019 Mar 30, 2021 Apr 1, 2021 27,600 23
(*)Oct 22nd 2019 is a national holiday in Japan, but counted as a weekday in the contract.
TOCOM Electricity Futures Market - Contract Month -
Copyright 2019 Tokyo Commodity Exchange, Inc. All rights reserved.
8 Energy Market Broker Members & JCCH Clearing Members
TOCOM Energy Market Broker Members
JCCH Energy Market Clearing Members
Energy Electricity
Okachi & Co., Ltd. ○ ○ 〇
Okato Shoji Co., Ltd. ○ ○
Okayasu Shoji Co., Ltd. ○ ○ 〇
Credit Suisse Securities (Japan) Limited ○ ○
COMTEX Ltd. ○ ○ 〇
Sunward Trading Co., Ltd. ○ ○ 〇
DAIICHI COMMODITIES CO., LTD. ○ ○
NISSAN SECURITIES CO., LTD. ○ ○ 〇
Societe Generale Securities Japan Limited ○ ○ TBD
Phillip Securities Japan, Ltd. ○ ○ 〇
Fujitomi Co., Ltd. ○ ○
Hoxshin Bussan Co., Ltd. ○ ○
Rakuten Securities, Inc. ○ ○
Yutaka Shoji Co., Ltd. ○ ○ 〇
* SBI Futures is also considering entering brokerage business in TOCOM electricity market.
Copyright 2019 Tokyo Commodity Exchange, Inc. All rights reserved.
9
TOCOM Broker Members listed below provide brokerage services to the customers outside of Japan.
Credit Suisse Securities (Japan) Limited
GCP Part 30 Nissan Securities Co., Ltd.
Okachi & Co., Ltd.
Part 30 Okato Shoji Co., Ltd.
GCP Phillip Securities Japan, Ltd.
Part 30 Societe Generale Securities Japan Limited
Yutaka Shoji Co., Ltd. “GCP”: General Clearing Participant, those who may accept and clear
trades on their own behalf, on behalf of their customers and non-clearing participants.
“Part 30”: Firms received Part 30.10 exemption from CFTC in USA.
Access to TOCOM Markets
Access from Overseas
Overseas Omnibus
Broker
TOCOM JCCH
General Clearing Participant
Broker Member
Remote Trade Member / Remote Broker Member
Overseas Customer / Associate Member
TOCOM Broker Members offering services to overseas customers
Registered ISVs
FIS
ION Trading Japan
Nihon Techno Systems Ltd.
TRAdE WORKS CO., LTD.
Trading Technologies Japan
Fractal Systems Inc.
Success Consulting Co., Ltd.
SOLEKIA Limited
CQG International Ltd.
Trade Systems Co., Ltd.
INTEC Inc.
Fidessa group plc
Bloomberg Trading Services Japan
Flex Trade Systems Pte Ltd.
CyberQuote Japan Ltd.
INTERTRADE Co., Ltd.
Simplex Inc.
Atplatform Technology
Codeli Technologies, Inc.
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For more information, please visit our website at www.tocom.or.jp
Market Data
www.tocom.or.jp/souba/all/index.html
TOCOM Historical Data
www.tocom.or.jp/historical/download.html
Trading Guide
www.tocom.or.jp/guide/index.html
JEPX Spot Market Overview
http://jepx.org/english/index.html
Contact Information
Visit TOCOM Building in Tokyo at:
1-10-7, Nihonbashi Horidomecho, Chuo-ku, Tokyo, Japan
Disclaimer:
No part of this publication may be redistributed or reproduced in any form or by any means or used to make any derivative work (such as translation,
transformation, or adaptation) without written permission from TOCOM. TOCOM shall not be liable (except to the extent required by law) for the use of the
information contained herein however arising in any circumstances connected with actual trading or otherwise.
Neither TOCOM, nor its servants nor agents, is responsible for any errors or omissions contained in this publication. This publication is for information only and
does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any other transaction. All information,
descriptions, examples and calculations contained in this publication are for guidance purposes only, and should not be treated as definitive. Those wishing either
to trade in any products available at TOCOM or to offer and sell them to others should consider both their legal and regulatory position in the relevant
jurisdiction and the risks associated with such products before doing so.