Market making review decisions and OTC platform selection

The Electricity Authority Te Mana Hiko (Authority) is making amendments to the market making settings in the Code to promote price discovery, competition and confidence in the electricity forward markets.

The main changes are to:

• introduce mandatory market making for the new standardised super-peak hedge contracts and
• extend market making requirements for quarterly baseload contracts from 3 to 5 years.

We are also making some minor technical amendments to improve the operation of the market making compliance framework.

You can find out more details about these changes in our Decision paper including how we have refined the amendments proposed in our consultation paper: Market making review: strengthening price discovery in the forward electricity markets. These refinements were informed by feedback and further analysis of trading behaviour and liquidity of different products and contract durations.

Mandatory market making for the standardised super-peak contracts will commence on 31 July 2026 on an enhanced OTC trading platform (see below for the outcome of the platform selection process).

The amendments to baseload market making requirements will come into effect on 1 March 2027 to align with the commercial market maker procurement process.

“These changes will make our view of future prices for super-peak hedges more reliable, improve certainty for long‑term contracting, and reduce barriers to competition by giving generators and retailers more effective risk management options,” says Hayden Glass, Electricity Authority General Manager of Wholesale and Supply.

“These changes are expected to foster competition and contribute to a more affordable and reliable electricity system. Market making is a proven tool to improve the availability of contracts and strengthen price discovery.”

OTC trading platform provider selection

To support trading of the standardised super-peak contract, Marex NZ Limited has been chosen by an Industry Selection Panel to provide an OTC trading platform with improved functionality.

The Panel selected the platform offered by Marex NZ on the basis of its strong track record, platform capability, capacity to meet the current and future needs of the market and commercial viability.

The need for an enhanced OTC trading platform to support transparency, liquidity and confidence was highlighted in feedback during the Authority’s earlier consultation on options for regulating the standardised super‑peak contract.

Current voluntary fortnightly trading sessions will transition to the Marex platform, which is expected go live by 31 July.

We thank all platform providers who submitted proposals. The Panel received a high standard of responses and appreciates the time and effort taken to participate in the selection process.

The Authority also extends its thanks to the Industry Selection Panel for their time, effort and availability throughout the selection process. The Panel was made up of representatives from: 2degrees, Bold Trading, Contact Energy, Electric Kiwi, Haast Energy Trading, Genesis Energy, Mercuria, Mercury and Meridian Energy.

View decision paper