Market making urgent Code amendment to expire

Following consultation, the Authority has decided to allow an urgent Code amendment to provide short-term relief for market-makers during periods of market stress to expire.

The amendment, implemented in September 2024, introduced a provision to reduce market making obligations when futures contract prices reach a specified price threshold. It has not been triggered and will expire on 12 June 2025.

We have decided to let the urgent Code amendment expire because we did not receive new information or evidence that it delivers clear, long-term benefits that outweigh its costs. There was also no clear consensus on an alternative to the expiration.

Any urgent Code amendment expires after nine months unless it is made permanent following a consultation process.

We are progressing work to strengthen security of supply which more directly targets the source of high prices in the spot and futures market. This includes measures to increase transparency of thermal fuel availability, strengthen competition in the supply of new generation to the market, and improve access to risk management tools.

We intend to undertake a wider review of market making later this year to ensure the current Code obligations remain fit for purpose.

Read decision paper