EEX to Introduce Daily Futures Contracts for Kansai Area

The European Energy Exchange (EEX) is considering introducing daily futures contracts for the Kansai area. EEX introduced daily products in the Tokyo area —both baseload and peakload—in June 2023. The Kansai region has recently seen an expansion in its share of total traded volume in Japan to around 30%. The new EEX contracts should help meet the need for short-term hedging as liquidity in Kansai increases.

When EEX first launched clearing services for Japanese power futures in 2020, most trading was concentrated in the Tokyo area. However, trading in the Kansai area has grown steadily, accounting for 14% in 2023, 23% in 2024, and 29% in the first quarter of 2025 (January to March). Behind this growth are factors such as the diversification and increase in market participants and more active trading based on regional price differences.

Product Offering and Future Market Development Plans

EEX currently offers weekly, monthly, quarterly, seasonal, and annual futures contracts in both the Tokyo and Kansai areas. Trading in daily contracts is currently only available in the Tokyo area, and is limited to a period of two weeks ahead. Weekend contracts covering the upcoming Saturday and Sunday are also available. Both baseload and peakload products are offered for these contract types.

Daily products can be used to hedge short-term price fluctuation risks, such as those occurring two to three days ahead. As the volatility of the spot market increases with the expansion of renewable energy adoption, demand for such products is expected to grow.

Details such as the product structure and launch timing for the Kansai area remain undecided and will be considered based on participant demand. EEX also plans to consider adding areas beyond Tokyo and Kansai in response to market needs.

EEX offers futures contracts (weekly, monthly, quarterly, seasonal, annual) in Tokyo and Kansai, with daily and weekend contracts in Tokyo. Baseload and peakload products are available. Daily contracts hedge short-term price risks, with demand expected to rise due to renewable energy-driven spot market volatility. EEX will consider Kansai daily contracts and new regions based on market needs.

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