Trading volatility has been the defining hallmark of the Asian peak season winter market. But this past winter, Asia has seen the emergence of a nascent but increasingly liquid derivative market to not only trade and manage that volatility but also to shed some light into forward expectations.
Liquidity in the Platts Japan Korea Marker Swaps or JKM Swaps product has shown explosive growth in volume since late-2016. In 2017, JKM exchange-cleared derivatives surpassed 9.6 million mt, nearly quadruple of 2016 volumes.