The Tokyo Commodity Exchange (TOCOM) and Net Energy announced today the April 10th signing of an MoU. Net Energy provides an oil trading platform and brokerage services in North America. The MoU will strengthen the linkage of crude oil trading between the North American and Asian markets.
Production of shale oil in the U.S. and oil sands in Canada has increased and more crude is heading to Asian markets. Associated hedging is therefore increasing, and Net Energy and TOCOM are well positioned to support this growing market. Net Energy has an extensive network in the North American oil industry and, the Dubai crude oil futures contract, the benchmark for Asian crude, trades at TOCOM. The two companies plan to partner to provide flexible trading environment that meets the hedging needs in the North-American and Asian markets.
TOCOM crude oil will be added to Net Energy’s OTC trading platform, allowing traders to easily access Asian crude oil trading. Matched orders will flow to TOCOM through a Broker Member as an Off-Floor Transaction (executed outside of the exchange).
Takamichi Hamada, TOCOM President and CEO, commented, “We are pleased to be strengthening our ties with Net Energy. At a reception we co-sponsored with Net Energy last month at the AFPM conference in New Orleans, I got a first-hand account of the growing interest in the Asian crude market. TOCOM’s products, combined with Net Energy’s solid track record in North America, set the stage for an exciting new opportunity for crude oil market.”
Tim Gunn, the President of Net Energy Inc said, “The energy in the Japanese markets today reminds me of when I was a foreign exchange trader here in the bubble years. Government, companies and young people are taking risks that I haven’t seen for a long time. It’s a very positive atmosphere. Net Energy is proud to be opening their Asian Head office in Japan to capture the growing trading opportunities between North America and Asia. We consider ourselves a fintech company, with leading edge exchange technology. Asia looks to offer unlimited growth, and we are excited about the opportunity to work with TOCOM in a rules-based environment.”
