Expiry of Urgent Code for market making under high stress conditions
Consultation
We’re seeking feedback on whether to make permanent, or allow to expire, an urgent amendment to the Electricity Industry Participation Code that provides relief from market-making requirements during periods of market stress.
In response to market stress during August 2024, we implemented an urgent Code amendment to reduce obligations on regulated market makers during periods of high futures market prices.
Under the amendment, a price-based test would be used to adjust market-making settings during times of stress.
An urgent Code amendment expires after nine months unless made permanent following a consultation process. This urgent Code amendment will expire on 12 June 2025.
The Authority is now consulting on options including if there is an ongoing need for a relief mechanism for the effective operation of market making in the New Zealand electricity futures market.
The Authority’s current view, based on information and analysis not available when the original decision was made, is to let the urgent Code amendment expire and we welcome feedback and alternative views.
We also invite comments to inform a wider review of market making settings commencing in 2025.
Consultation paper
Make a submission
We welcome submissions to market.making@ea.govt.nz by 5pm Monday 14 April 2025. Please include 'Market Making Consultation Paper' in the subject line.
If you cannot send your submission electronically, please contact market.making@ea.govt.nz to discuss alternative arrangements.
We will publish all submissions. If you consider that we should not publish any part of your submission, please:
- indicate which part should not be published and explain why, and
- provide a version that we can publish (if we agree not to publish your full submission).