Goldman Sachs To Start Trade Of Japanese Power Swaps

Goldman Sachs Group plans to open a desk in Tokyo to trade Japanese power swaps, according to two people familiar with the situation.

More global energy businesses and banks are attempting to get access to Japan's power market, which was launched in 2016 in the aftermath of the Fukushima nuclear accident in 2011, spurring trading activity among generators, consumers, and distributors.

As the volatility of energy prices increased during Russia's invasion of Ukraine, traders' interest in trading increased, as did liquidity in Japan's power futures markets. According to the sources, the power crisis has increased the necessity for hedging among power producers and purchasers.

According to sources who requested anonymity because the subject is still private, Goldman Sachs has employed some traders in Tokyo.

Goldman Sachs is a multinational investment bank and financial services firm headquartered in New York City. Goldman Sachs was founded in 1869 and is headquartered at 200 West Street in Lower Manhattan, with regional offices in London, Warsaw, Bangalore, Hong Kong, Tokyo, Dallas, and Salt Lake City, as well as locations in other international financial centres. Goldman Sachs is the world's second largest investment bank by revenue and ranks 57th on the Fortune 500 list of the largest firms in the United States by total revenue. The Financial Stability Board considers it a systemically important financial institution.