MUFG boosts energy market presence with trading approvals, stake buy

It has clinched approvals from TOCOM and the Japan Securities Clearing Corporation.

MUFG Bank has obtained two approvals and is investing on a 49% stake on eClear Co. in preparation for commencing power futures trade execution services.

The Japanese megabank said that it has clinched approvals for participant qualifications in the energy market from both the Tokyo Commodity Exchange (TOCOM) and the Japan Securities Clearing Corporation. TOCOM is a domestic exchange handling energy commodity futures. 

The bank is separately investing in a 49% stake in eClear– a subsidiary of enechain, a startup running an energy forward marketplace in Japan that has a gross merchandise value (GMV) of JPY1t as of 2023. 

eClear provides services for reducing counterparty risk in wholesale power spot trading. 

With this, eClear will become an equity-method affiliate of the bank, according to a press release by Mitsubishi UFJ Financial Group (MUFG) posted on its website.

All these are part of MUFG Bank’s preparation to enter the power futures trade execution and clearing services business at TOCOM in October 2024.