Market making

Strengthening price discovery in the forward electricity markets

Upcoming Open Closed Decision
View submissions Submissions closed 23 December 2025
Share

Decision

We have decided to change market making arrangements. The changes will require mandatory market making for standardised super-peak contracts, extend market making requirements for quarterly baseload contracts and reduce total baseload offer volumes.

The changes will:

  • require market making for standardised super-peak contracts by regulated market makers on an approved OTC platform, with a total offer volume requirement of 6 MW per contract at 5% bid-ask spread
  • extend market making requirements for quarterly baseload contracts traded on the ASX out to 5 years ahead, from 3 years currently
  • reduce the total offer volume from 12 MW to 8 MW for quarterly baseload contracts with a duration of three to five years ahead (retaining the current 12 MW total offer volume for the first two years of the price curve)
  • other minor technical amendments to the Code to improve the operation of the compliance framework and clarifying the definition of the exemption to quote.

We consider these changes will strengthen price discovery for shaped hedges, improve certainty for long‑term contracting, and reduce barriers to entry by supporting more effective risk management.

Mandatory market making settings for standardised super-peak contracts will commence on 31 July 2026 on an enhanced OTC trading platform. Amendments to baseload market making requirements will come into effect on 1 March 2027.

Thanks to all who provided feedback on this consultation.

Decision paper

Market making review - Decision paper

Market making review - Decision paper

Consultation

This consultation sought feedback on proposals to amend the Electricity Industry Participation Code to require mandatory market making of the new standardised super-peak contract, extend longer dated futures to five years and reduce total baseload offer volumes.

These complementary measures are intended to increase transparency of forward prices and improve confidence in the contracts market.

Stronger price signals will better support risk management and enable entry and investment for a highly renewable electricity system which in turn will put downward pressure on prices for consumers.

The Authority consulted on proposals to strengthen trading of the super-peak product introduced in January 2025, which included continuing with voluntary trading with a conditional trigger for regulation. After considering submissions and further analysis, the Authority changed its position and believed requiring mandatory market making was necessary.

Consultation paper

Market making review: strengthening price discovery in the forward electricity markets - Consultation paper

Market making review: strengthening price discovery in the forward electricity markets - Consultation paper

Q & A

We received questions from some stakeholders about this consultation.

Read our responses

Submissions

Download all submissions (.zip)