Morgan Stanley (MS.US) plans to enter the Japanese electricity spot trading market and ramp up its energy hedging business.

Morgan Stanley (MS.US) is preparing to conduct electricity spot trading in Japan, becoming the latest foreign financial institution hoping to profit from this volatile market. Alberto Tamura, head of Morgan Stanley Japan Holdings, said the bank has designated a person to recruit and lead the team for its spot trading business. Tamura pointed out that entering the electricity market will enable the company to provide energy hedging solutions for clients in the long run. He said that this move will be a "continuing and important DRIVE in our future revenue growth." The liberalization of the Japanese electricity market about a decade ago has attracted many domestic and foreign companies in the past few years, leading to a rapid growth in futures trading volume. Extreme weather patterns, more intermittent renewable energy integration, and uncertainty about the restart of nuclear power in the country have collectively caused market volatility and increased the demand for hedging solutions. Overseas companies have also taken steps to obtain the necessary licenses to join the Japanese spot electricity market and establish physical offices. The Goldman Sachs Group, Inc. obtained the relevant license from the Japanese Ministry of Economy, Trade and Industry last year. According to a spokesperson for Morgan Stanley, the bank acquired a local power retailer in 2025 to absorb its license. They stated that the bank has previously engaged in electricity futures trading in Japan.