SFE Trading Mechanisms
In addition to trading quarterly contracts, supplementary trading mechanisms are available for trading the d-cypha SFE Australian Electricity Futures Contracts.
Relevant SFE Operating Policies and Notices are available at Operational Policies. The information below is provided as a general overview.
Block Trade Facility (BTF)
The Block Trade Facility (BTF) is an off-market trading facility, that enables market participants to bilaterally arrange transactions (e.g. via OTC negotiation) which can be registered for clearing by a SFE Participant.
Pre-Negotiation
The SFE Business Rules for Pre-Negotiation allow Participants to withhold orders and pre-arrange trades off-market before bringing the negotiated business to the Exchange for matching within SYCOM.
Exchange for Physical (EFP)
An Exchange For Physical (EFP) is an off market transaction between wholesale participants which involves the switching (or exchanging) of an OTC derivative for an exchange traded derivative.
Strip Trading Procedures
A strip trade is defined as a trade where 4 consecutive* quarters of a futures product (with the same volume for each of those quarters) are bought or sold simultaneously, at a weighted average yearly price. * Exception: Australian Power Strip trades will involve simultaneously buying or selling an equal quantity of base load futures contracts in each of NSW, VIC, SA and QLD in the same calendar quarter at a straight-line average price.
SYCOM Custom Market
The SYCOM Custom Market is available for non-standard, infrequently traded spreads, or other strategies where SFE has not designated a predetermined market on SYCOM. The Custom Market accepts spread orders in futures, strips, caps and option products.