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Over-the-counter market

The over-the-counter market is a key part of hedge market developments. Hedge markets is an umbrella term for all the markets that industry participants use to manage risks.

  • Wholesale

    • Open consultation

    Standardised super-peak hedge contract: clause 2.16 information notice

    Submissions due by 19 December 2025

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    Overview

    We are consulting on a proposed notice under the Code to require all participants who operate an electronic platform on which standardised super-peak electricity contracts are available for trade to regularly provide the Electricity Authority with trade data.

    In May 2025, we consulted on a proposed information gathering notice to collect information on OTC requests for contracts and responses to those requests. We consulted again in July 2025 because our proposal expanded in scope and we wanted to ensure affected parties had the opportunity to make a submission. View consultation

    In June 2024 we decided to improve the Hedge Disclosure Obligations scheme to improve transparency of hedge information and provide clearer price signals for investment decisions in electricity generation and storage to support the electrification of New Zealand.

    In 2023, we facilitated an industry working group that created a voluntary Code of Conduct for participants in the OTC market. Signatories commit to a number of underlying principles and behaviours when participating in the OTC market.

    Timeline

    Past activity

    Project background

    The over-the-counter (OTC) market is a type of off-market transaction in which multiple participants buy and sell financial contracts whose underlying asset is electricity.

    We started work on the over-the-counter market in 2022 in response to restrictions placed on some New Zealand electricity market participants' ability to access the Australian Securities Exchange futures market.

    Our aim is to improve the efficient operation of alternative markets. This will become increasingly important in managing the risks associated with New Zealand's transition to a low-emissions energy system.

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