Japan's TSE starts market maker trial in carbon credit market
27/11/2023 11:33
TOKYO, Nov 27 (Reuters) - Japan's Tokyo Stock Exchange
(TSE) said on Monday it has launched a market maker mechanism on
a trial basis in the newly-launched carbon credit market to
boost liquidity.
The trial will run from Monday to Feb. 29, 2024, and the
target classifications are J-Credit on energy-saving and on
renewable energy (electricity).
Designated market makers are trading house Sumitomo Corp
8053.T , Marubeni Corp 8002.T and Mitsui & Co 8031.T as well
as Daiwa Securities 8601.T and Mizuho Bank 8411.T .
The TSE, a unit of Japan Exchange Group 8697.T , started
trading carbon credits last month as the world's fifth-largest
carbon dioxide (CO2) emitter put in place a key element of its
strategy to tackle climate change.
The exchange said at the time it would introduce a market
maker mechanism later this year to help ensure liquidity.
Under the scheme, designated companies have obligations to
quote a certain volume of simultaneous buy and sell orders
within a certain price range. The quoting time is 1300-1500
local time (0400-0600 GMT), the TSE said.
(Reporting by Yuka Obayashi, Editing by Louise Heavens)
((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))