TOCOM Energy

Japan Electric Power Exchange (JEPX) (Chairperson: Kanemoto Yoshitsugu) and Japan Exchange Group, Inc. (JPX) (Director & Representative Executive Officer, Group CEO: Yamaji Hiromi) will jointly provide a linked service (JJ-Link (Tentative Name)) for spot and futures trading related to electricity as part of measures based on a Memorandum of Understanding (MOU) signed on January 19, 2023.

JJ-Link is a service to procure and sell through JEPX spot trading the electricity that underlies positions in electricity futures on the JPX Group’s Tokyo Commodity Exchange (TOCOM). The service will be provided in two phases.

In Phase 1, TOCOM receives electric utilities operators’ spot trading data from JEPX, checks it against the operators’ futures positions, and returns the results to the operators showing that the two are linked.

In Phase 2, data linkage from TOCOM to JEPX will be used to construct a bidding system for the electricity that underlies futures positions and make JJ-Link a one-stop service.

JEPX and JPX hope that the provision of JJ-Link will simplify operations at electric utilities operators and facilitate the acceptance of the hedge accounting of electricity futures.

Phase 1 is scheduled to be implemented in Fall 2024, and Phase 2 in 2025 at the earliest.

JEPX, JPX and their group companies will continue to strengthen their partnership in order to create valuable services for electric utilities operators and other users in both the spot and futures markets.