TOKYO (Reuters) - Goldman Sachs Group (NYSE:GS) plans to establish a desk in Tokyo to start trading Japanese power derivatives, two people familiar with the matter told Reuters on Wednesday.
More foreign energy companies and banks are seeking access to the Japanese power market, which was launched in 2016 in the wake of the Fukushima nuclear disaster in 2011, spurring trade activity by generators, consumers, and distributors.
An interest in trading rose amid growing liquidity in Japan's power futures markets as the volatility of electricity prices surged following Russia's invasion of Ukraine. The power crisis heightened the need for hedging among power suppliers and buyers, according to the sources.
Goldman Sachs has hired some traders in Tokyo, the sources said, requesting anonymity as the matter is still confidential.
A spokesperson for Goldman Sachs declined to comment.