Supporting Japan's power markets

Macquarie Commodities and Global Markets’ Futures division supports the Japanese power market, providing local support for clients seeking to access the global futures markets

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Sector	Commodities
Sub-sector	Energy
Location	Japan

Opportunity

The full liberalisation of Japan’s retail electricity sector in 2016 opened one of the world’s largest energy markets to new entrants, driving significant change across the industry.

Designed to increase customer choice and improve efficiency through greater competition, the reform reshaped how electricity can be bought, sold and managed.

One important development has been the growth of the exchange-based power futures market, which provides market participants with effective tools for price discovery, risk management and mitigation of counterparty credit risk in power trading.¹

In response to the rising use of these markets, Japanese utilities and trading firms are developing and expanding their power trading capabilities. International traders have also strengthened their presence by establishing onshore physical and paper trading activities and adding Japanese power products to their trading portfolio.

Approach

Macquarie Commodities and Global Markets’ (CGM) Futures division has supported clients trading Japan Power futures contracts since they were launched by the European Energy Exchange (EEX) in 2020. Driven by our success in the region and to expand our Futures offerings in Japan, the Tokyo (CGM Japan Futures) desk was established in 2023.

With significant experience across global energy markets, the Japan Futures team provides dedicated local support to clients across Japan and the broader region, including access to trade fuels and other commodities. It also provides opportunities to trade in Japan power on international (overseas) futures exchanges.

Supported by the Futures division’s global market reach and CGM’s commodities expertise, clients also benefit from access to adjacent energy products and markets, bespoke reporting, and flexible collateral management.

The team also undertakes educational seminars for clients new to futures.

Outcome

CGM's Japan Futures desk has supported clients across the Japanese power market by working closely with major power companies and other market participants, helping them meet their risk management objectives through access to global futures markets.

In the wholesale segment, the team has been working with power generation companies in Japan, including key players in the domestic energy supply, supporting their engagement with global energy markets.

With comprehensive coverage across futures markets, CGM Japan Futures Sales is well placed to support clients’ evolving needs with tailored solutions, as well as continuing to contribute to the growth and development of the Japanese energy market.

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On-the-ground presence providing dedicated support

Electric Network, Power Grid, Electrical Grid, Electricity Network, Power Distribution, Electric Infrastructure, Energy Grid, Power System, Electrical Network, Energy Distribution

Recognised commodities franchise

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Tailored solutions to meet client needs

Fully invested in Japan's growth

Bringing together global expertise and a strong local presence, Macquarie has been investing in Japan for more than 25 years.

Explore our capabilities

1. Managing Electricity Price Volatility Risk and the Importance of Electricity Futures, The Institute of Energy Economics, Japan, April 2025, https://eneken.ieej.or.jp/data/13200.pdf

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Commodities and Global Markets

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