deck_14924216 (1) Flashcards
(22 cards)
why does Japan have enormous potential?what is Japan’s electricity fuel mix?What is the Japanese partition?
2022 - Japan generated 966 Twh (equal to Germany and France)ideal environment for hedgingelectricity fuel mix: mostly coal and gas, and then renewables and then NuclearPartition = East (50Hz) vs West (60Hz)
Why is Japan an ideal environment for hedging?
Fuel Mix – Gas, Coal, Renewables, Nuclear, etc = diverse opportunities for hedging71% of electricity fuel is imported – Japan is the no.1 LNG and no.3 thermal coal importer in the world. = opportunities for traders to hedge against price volatility in international marketsExtreme weather = price fluctuationsOne of the largest competitive electricity markets in the world - 86 million retail customers able to switch providers.= competition for traders to be innovative2 different frequencies between East and West with capacity load = need to manage using strategies
What is Japan and Germany’s current trading volume
current: German power = 297 TWh, Japan power = 2.4 TWh
What is Japan’s potential trading volume based on generation
493 TWh
what are the Japan power trading volumes on EEX
close to 5 million (2023)
What does Japan power generation equate to
Germany and France combined
What is the Japan power market share
95% EEX, 5% TOCOM
How many Japan power trading participants, how many active
60 trading participants, 25 active12 companies logging into trayport every month
how many active japan power brokers, names
4 active brokers - Vanir, Enechain, GFI, Prebon
what do japan power clients need (technical products)
Web front end and mobile app
What are the 3 Japan power market initiatives?
TOCOM window - broker-to-broker downstreams, brokers see each other’s numbersBack office connectivity, - 80% reported through Trayport but zero penetration to japanese companiesNumbers on Screen - Direct screen access (
what are the benefits of the initiatives
TOCOM window = gain access to network of 5 brokers ~60 trading participantsBack office connectivity = revenueNumbers on Screen = more traders and more numbers, Trayport reach
what are the challenges of the initiatives
TOCOM window = Testing, inadequate joule mobile product, no webscreen, limited chance of successBack office numbers = Technical issues are yet to even be known, engagementNumbers on Screen = no one seeing numbers on screen (Kyle Hamilton’s), couldnt line up traders at the same time
What are the advantages of the Singapore office
Cross teamworkdirect access to end usersfaster= superior end product
recite the trayport situation report
Value = back office connectivity (not clearing STP)not many numbers on Japan power screen so no price discovery or execution20 traders/ month logging inNo Trayport license fees yetgoal: onboard 25 new traders this year
What are the Trayport moves
TOCOM Window → Increase NETWORK by adding TOCOM usersDirect Screen (Joule Mobile) - Increase LOGINS by easier access Back Office Connectivity - double down on CONNECTIVITY strength, but difficult for Trayport to directly influence.New Participants - Building NETWORK to achieve critical mass for screen activity.
What is the status of the japan power market
2 Exchanges: EEX 95% market share; TOCOM 5% ~60 Traders BUT only ~25 active 4 active Brokers:Vanir & enechain = 93%GFI & Prebon = 7%Top Euro traders Vattenfall & MFT
What is Trayport’s Dilemma in Japan power
Traders won’t log in to Trayport if there are no orders to see.If there aren’t enough traders viewing Trayport, then traders won’t place orders on Trayport.
What does Trayport need for Japan power
Web Front End / Mobile AppEase of Access - No internal IT approval, quick access Functional & Clean - low liquidity market, time to obtain the information must reflect the time allocated by userCompetition - CT Grid is trying to displace Trayport
Summarize Singapore team
9 people - Small size advantage, dynamic Diverse Skills: Commercial, TCMS, Web, Testing, IT ops/infrastructure. Experience - 4 with 10+ years Similar to a Start-Up, its a highly collaborative environment.
Why is Singapore a hub
~70 Clients serviced from Singapore15 Broker firms50 trader firms5 Exchanges200 usersDirect Access - Constantly meet commodity people in Oil, Shipping, Gas/LNG, Power, Bulk (Iron ore, coal) and now Carbon
Summarize Singapore problems and solutions
Solution 1 - Increasing headcount will evolve the office naturallySolution 2 - Team is searching for that particular piece of work that can be done in SingaporeHow can we grow the team in Singapore? Seed a team in SingaporeFill vacant positions in Singapore instead of LondonWhat does Trayport need to build?Web Screen, Mobile App, Data Fields (aka Smart Price Formats for physical markets), Conditional Orders, Asia Server What do YOU need?Support? Boss told to hire in Singapore? etc
