Nasdaq to Provide SMARTS Market Surveillance Technology to Japan Electric Power eXchange
April 21 2015 - 8:01PM
Japan Electric Power eXchange (JEPX), the primary exchange for
electricity in Japan, has announced that they will enhance their
market oversight capabilities with Nasdaq's (Nasdaq:NDAQ) leading
SMARTS Market Surveillance platform. The technology will give JEPX
the surveillance tools to monitor spot and forward transactions of
electricity for market manipulation, as well as complex analytical
capabilities. The surveillance system will be operational before
the full deregulation of Japan's electricity industry which is
slated to enter into the country's retail sector in April 2016.
Mitsubishi Electric Corporation (MELCO) will be the system
integrator for this project.
"We're pleased to partner with a market leader such as JEPX, as
we look to assist exchanges to become safer and more transparent
for market players across the globe," said Lars Ottersgård,
Executive Vice President, Market Technology. "As deregulation of
the electricity sector increases the role of JEPX in the setting of
electricity prices in Japan, SMARTS Market Surveillance will enable
JEPX to leverage sophisticated surveillance technology to support
the growth of the market and safely optimize trading activity."
Traditionally the Japanese electricity industry has been divided
into 10 regions each with a monopolistic, vertically integrated
utility responsible for generation, transmission and distribution
networks to customers. The industry has focused on the security of
supply and retail electricity prices which are among the highest in
the world, since utility providers are allowed to pass costs to
consumers and aren't exposed to competition.
To increase competition and efficiency in the market the
Japanese government embarked on a policy of deregulation which has
accelerated in recent years. JEPX's trading volume has been
increasing significantly due to these deregulation measures and the
exchange will play an increasingly important role in setting of
power prices. In 2016, the distribution to the retail sector is
expected to be fully opened up, and electricity derivatives
products will also be introduced in the market.
SMARTS Market Surveillance platform is able to identify
manipulative practices across all forms of trading, and Nasdaq has
invested in visualizations and detection techniques focused on
protecting electricity and power markets. SMARTS Market
Surveillance will also be rolled out across Europe by the European
Union to monitor all wholesale electricity market activity.
SMARTS surveillance solutions operate in more than 50 trading
venues and regulators, and more than 90 market participants across
65 markets.
About Nasdaq
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with a market value of over $9.1 trillion and more than 10,000
corporate clients. To learn more, visit http://nasdaq.com/ambition
or http://business.nasdaq.com.
About Japan Electric Power eXchange
JEPX is a wholesale electric power exchange founded on November
2003, based on the purports of the report "Framework of the
Desirable Future Electricity Industry System" presented by the
Electricity Industry Committee of the Ministry of Economy, Trade
and Industry (METI). JEPX is responsible for opening and operating
the wholesale electric power exchange that mediates sport
transactions and forward transactions of electricity. To learn
more, visit http://www.jepx.org/english/index.html.
NDAQG
CONTACT: MEDIA CONTACTS
Nasdaq:
Ryan Wells
(646) 581-4286 (M)
Ryan.Wells@nasdaq.com
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