TFS Energy today announced its US and Australia-based weather derivatives division completed the first-ever auction in Asia on behalf of a client who was looking to diversify its weather exposure and to help build liquidity in Japan. Offers were solicited for cumulative average temperature futures and calls in Japan for the May – September 2008 time period for the cities of Tokyo and Osaka. The auction was fully placed and was over subscribed in terms of the capacity that was available in the market. More details are available from PR Newswire.
This is the first ‘Dutch auction’ style transaction in Asia and bodes well for the Japanese market place as it will help to encourage liquidity.