SearchJapan’s power market has seen extraordinary growth. Trading volumes in 2024 were four times higher than 2023, and March 2025 set a new monthly volume record with 13.6 TWh traded. In response to this growing market maturity and liquidity, the European Energy Exchange (EEX) launched the new Japan Power Monthly Option – opening new opportunities for market participants.
But seizing these opportunities requires the ability to develop forward curves:
You can’t value or manage risk without a reliable forward curve.
– Jivan Drungilas, Quantitative Analyst
Forward curves underpin every pricing, hedging, and risk management decision. They need to reflect not only overall market sentiment but the granular structure of daily, intraweek, and intraday patterns that are especially relevant in Asian-style options.
Watch the video below to learn how Lacima Trader makes curve construction fast, simple and accurate.
In the first episode of our Navigating Japan Power Options video series, we demonstrate how Lacima Trader > Curve builds high-resolution, market-specific forward curves by:
- Turning raw market quotes into a fully profiled forward curve
- Capturing shape details like the intraday ‘rubber duck’ pattern
- Generating curves that align with both market data and valuation framework
👉 Have questions about curve methodology or how Lacima Trader can help? Get in touch with our team.
Part 2: Simulating Prices
