ASX Information Session - 6 December 2007

Several enhancements to the Determinations and Procedures underpinning the Electricity Futures and Options market will take effect Monday 10 December 2007.

Please see below for PDF attachments from the ASX Information Session.

Summary of enhancements

• An increase in minimum volume threshold for Block Trades from 5 to 15 lots. This change reflects the requirement for broader participation in order flow given the increasingly diverse group of market users.
• Introduction of pre-negotiated business rules to enable market participations to arrange business in the over-the-counter market for execution on the Trading Platform (SYCOM).
• Changes to the Daily Settlement Price (DSP) methodology so that the DSP is derived from the most competitive bid, offer or last trade, and not the mid-point of a pre-determined maximum bid offer spread.
• A change to the Trade Notification methodology for Block Trades so to better distinguish between the ‘leg prices’ of different Block Trades.
• A prescribed algorithm to allocate prices to quarterly futures contracts resulting from trades in Strip Products. This enhancement will eliminate the requirement for futures prices to be negotiated, enabling market participants to spend more time focusing on trading instead of post trade administration.

Further reading

Several earlier SFE Notices provide clarity on entering Pre-negotiated Business Orders into the market and full trade anonymity.

SFE Notice 23/06 Entering Pre-Negotiated Business Orders into the Market

SFE Notice 132/05 Full Trade Anonymity for d-cypha SFE Electricity Futures and Options

SFE Notice 112/05 Clarification of Guidelines on Divulging Information in an Anonymous Market