Press Conference by Minister Hagiuda (Excerpt)

*Note: This is a provisional translation for reference purposes only.

9:14-9:25 a.m.
Tuesday, February 1, 2022
Press Conference Room, METI

Question-and-Answer Session

Electricity and LNG Futures Trading

Q: The Tokyo Commodity Exchange applied for LNG futures transactions and electricity futures transactions, which have recently been approved.
Please tell us your opinions, if any, about how futures transactions are expected to contribute to the Japanese economy and industry.

A: On January 28, METI approved the application for the permanent listing of electricity futures and the trial listing of LNG futures submitted by the Tokyo Commodity Exchange after examining them based on the Commodity Futures Act, as they were found to comply with the approval criteria.
As the liberalization of the electricity and gas markets progresses, it has become increasingly necessary for businesses to hedge risks of sudden fluctuations in power and LNG prices such as the rise in electricity prices in the Electric Power Exchange caused by the tight supply and demand conditions of electricity last winter, and the worldwide increase in spot prices of LNG in recent years.
For this reason, METI recognizes that this listing will contribute to the stability of electricity systems and other systems by promoting risk management by these businesses.