Since its launch in April 1998, our Australian electricity broking desk has enjoyed enormous success and is recognized as the leader in this new market. It offers fixed-against-floating electricity swaps linked to the relevant National Electricity Pool (NEP) price for the state; inter-regional spreads; and electricity options. The team has also structured a range of other less-standard products and has been invited to be involved in developing the country's first ever electricity price forward curve. While contract sizes and volumes remain small relative to more developed markets, we provide more than 40 Australian clients with the liquidity they need.

Our goal in establishing an early presence in Australia's deregulating power markets was to develop the necessary local market expertise required to service a broader client base as deregulation progresses.

In Tokyo we have a team of brokers preparing for the deregulated Japanese power market. Trading is likely to start in early 2003.