Our projects
Enabling investment and innovation
Open Consultation

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

    Improving visibility of competition in the OTC contract market: consultation on updates to clause 2.16 notice

    Submissions due by 1 September 2026

    View consultation

    Overview

    Amendments to the hedge disclosure obligations in subpart 5 of Part 13 of the Code take effect on 1 August 2026.

    We announced these changes in April in our Code amendment Omnibus #6 – Decision paper. The amendments resolve operational issues identified following the 2024 updates to the hedge disclosure obligations and will improve the clarity and usability of the Code.

    The amendments include:

    • improving identification of power purchase agreements and firming arrangements
    • introducing clearer timeframes and processes for novel contracts
    • requiring participants to provide consistent information on demand response arrangements
    • making technical and non-controversial amendments.

    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.

    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.

    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.

    Other projects in Enabling investment and innovation
    View all projects

    Distribution connection pricing reform

    Improving connection pricing methodologies so they’re more efficient with greater consistency across distributors.

    Have your say

    Submissions open until 24 August 2026

    View consultation

    Energy Competition Task Force

    Investigating actions to strengthen the performance of the electricity market for the benefit of all consumers.

    View project

    Spot market settlement on real-time pricing

    Dispatch-based, look-ahead design for real-time pricing to make wholesale spot prices more certain, accurate and efficient.

    View project