(Bloomberg) -- Japan’s biggest power producer joined the country’s nascent futures market, a move that could boost liquidity and help attract more of the world’s top traders.

Jera Co. is now trading Japan power futures contracts cleared by the European Energy Exchange AG, said company spokesperson Hiroyuki Usami, declining to comment on exactly when the firm started trading. Jera recently finished the procedure needed to join the EEX, he added.

See also: Power Traders Flock to Japan And Its $136 Billion Market

EEX, the world’s biggest power bourse, launched clearing services for Japan futures in 2020, and has since become the exchange of choice for the product. However, regional utilities in Japan have largely dragged their feet in joining the market, as they pass most costs to consumers and haven’t seen an urgent need to use derivatives to hedge risk.

While trading volumes have grown in the last few years, they still pale in comparison to developed markets in Europe. About 440 gigawatt hours of Japan power derivatives were traded on EEX in January, equivalent to roughly 0.1% of the volume in Germany during the same period.

From Shell Plc to German utility RWE AG, companies are hiring, reassigning staff and building relationships with Japanese firms to profit in its market. But the lack of liquidity has made it challenging for some companies to set up trading desks or boost their position.

Jera started futures trading on the EEX because it considers power futures to be an important tool for hedging risk, Usami said. Power providers are grappling with the volatile physical electricity market and overseas fuel costs amid a global energy shortage, and using derivatives is one option to help mitigate risk.

EEX posted on its LinkedIn page that Jera became a participating member. It didn’t immediately respond to a request for comment.

©2022 Bloomberg L.P.