TOCOM's Response to Electricity Demand Control for Summer 2011



In preparation for a possible shortage of electricity supply this summer in the service area of the Tokyo Electric Power Company (“TEPCO”), Tokyo Commodity Exchange, Inc. (“TOCOM”) has examined the effects of electricity demand control and power outage measures in its building and data center (“DC”), which house TOCOM’s systems. This examination is in response to the Outline of Electricity Supply-Demand Measures in Summer Time (Draft), announced on April 8 by the government.

The following are the demand control measures we will implement and market management policy we intend to carry out to prevent disorder from power outages. We ask all concerned parties their understanding and cooperation in this matter.

Please also note that such measures are subject to change based on government policy.           

1. Our measures for electricity demand control and power outage

A. Electricity demand control

B. Power outage measures

2. Market management policy

As an exchange that lists internationally traded commodities, we consider it our mission to provide continuous market access. This supports the maintenance of price correlation with foreign markets and provides price discovery to our market participants. Therefore, TOCOM will continue operating as usual (without changes to the trading hours) during the implementation of power consumption reduction measures listed above.

In the event of a blackout resulting from electricity supply-demand conditions, TOCOM will make a decision, after careful consideration, on the suspension of trading session in accordance with the “Contingency Plan for Cases Including System Failure (CP)”. TOCOM will reopen the market when it judges that continuity of transactions can be established, even during the session where blackout occurrs. Please note that this reopening process is different from the notice previously announced on March 18, titled “Exchange Response in Case of Unpredictable, Large-Scale Blackout”, under which the suspension is effective for the entire session where the blackout occurs.