Operating alongside the electricity hedge market, the FTR market helps to promote retail competition by encouraging retailers to compete for customers on a nationwide basis, as opposed to focusing primarily on regions close to where they own generation assets.

The Authority established the FTR market under Parts 13 and 14 of the Electricity Industry Participation Code. Financial transmission rights are also governed by the Financial Markets Conduct Act 2013 and are regulated by the Financial Markets Authority (FMA).

The market started in June 2013 with the two FTR points Otahuhu and Benmore.

In November 2014, the FTR market  expanded to include new FTR points at Haywards, Invercargill and Islington.

The FTR manager

The FTR manager manages the FTR market under contract. The FTR manager publishes the FTR allocation plan containing the auction rules and grid design.

Auctions are held twice monthly. Before and during each auction the FTR manager also checks with the clearing manager that the amount of security each party holds is sufficient to validate their bids.

Financial transmission rights market – FTR manager

The clearing manager

The clearing manager manages the prudential security and settlement of FTR. The clearing manager also publicises the financial transmission rights prudential security assessment methodology.

Clearing manager

On 8 October 2015 the Authority approved an urgent variation to the clearing manager’s prudential security methodology. The variation is available from the clearing manager’s website and expires on 9 July 2016.

In accordance with clause 4(7)(b) of Schedule 14.2, the Authority is required to publish a notice of the variation and statement as to why the urgent variation is needed.

Inland Revenue rulings on financial transmission rights

The Inland Revenue Department (IRD) has issued a non-binding ruling that financial transmission rights are exempt from GST, and another ruling relating to how traders should treat financial transmission rights in their income tax returns.


Financial transmission rights are futures contracts under the Financial Markets Conduct Act 2013.

The financial transmission rights manager and clearing manager will not deal in financial transmission rights with any person, other than an approved participant. Financial transmission rights are not offered outside New Zealand.

The information on this website relating to financial transmission rights is of a general nature only and does not constitute personalised financial advice. While we have made every effort to ensure the information provided is accurate, you should not rely on this information to make any financial decision. If you are an approved participant and are considering purchasing or trading in financial transmission rights, you should carefully consider the risks and benefits and, if necessary, seek professional advice.

Money paid for financial transmission rights will be held in [name of account], and does not represent a liability of the Authority, the FTR manager or the clearing manager. None of the Crown, the Authority, the FTR manager or the clearing manager (or any of their directors, officers or managers) nor any other person guarantees the performance or returns of any financial transmission rights or the repayment of capital.