ASX New Zealand Electricity Futures & Options

Similar documents
Australian Electricity Futures and Options. Contract Specifications

Australian and New Zealand Natural Gas Futures. Contract Specifications

LEPOs. Low Exercise Price Options Explanatory Booklet

LEPOs. Low Exercise Price Options Explanatory Booklet

Electricity TradeAccept Guide

Overview of ASX Energy Initial Margins

What are options? Course 2

ASX 24 OPERATING RULES

LEPOs. Low Exercise Price Options Explanatory Booklet

ReferencePoint Derivatix Message Specification

ReferencePoint Derivatives Message Specification

Understanding Hybrid Securities. ASX. The Australian Marketplace

Introduction to Foreign Exchange. Education Module: 1

Contract Specifications

Futures. June Product Disclosure Statement. Issuer: BBY Limited ABN AFSL

A Proposal to Mitigate Credit Risk

Business and Technical Overview. ASX Derivatives Clearing System Introduction of Weekly and Serial Options

For personal use only

What to consider in an investment

ASX 3 and 10 Year Treasury Bonds Futures and Options Interest Rate Markets Fact Sheet Australia

Hybrids (2): Convertible notes

New Trading Platform Release Notes - Derivatives Release 3

Repayment and conversion

Interest Rate Derivatives Price and Valuation Guide Australia

You do not need to take any action in respect of this Notice, however if you wish to respond, please see details on how to contact us set out below.

Regulation of the NZ electricity market. Presentation to EMAN 410 Students, University of Otago 19 July 2013 Carl Hansen

For personal use only

Product Disclosure Statement

Online. Professional. Futures and Derivatives Product Disclosure Statement. JUNE 2012

Equity and Index Options Listing Guidelines for ASX equity markets

APA GROUP RETAIL ENTITLEMENT OFFER

The SPP provides Eligible Shareholders with the opportunity to purchase New Shares at an issue price which is the lesser of:

For personal use only

1 Understanding options trading

Italian Electricity Futures Contracts. Table of Contents Italian Electricity Futures Contracts: EITF Quotation List

SCHEDULES TO THE RULES OF ASX CLEAR (FUTURES)

Table of Contents. ASX BBSW Trade and Trade Reporting Guidelines v ASX Limited ABN /22

For personal use only

The definitive reference data service, direct from the source

ANZ COMMERCIAL ANZ BUSINESS BANKING 12.17

Interest Rate Derivatives

EODBABs Calculation Methodology

MINIs. Product Disclosure Statement Part 1

NON-RENOUNCEABLE RIGHTS ISSUE

For personal use only

Dividend reinvestment plan - Plan highlights and frequently asked questions. Link Administration Holdings Limited (ABN )

Settlement and prudential security methodologies. 15 April 2015 Version 1.1

CitiFirst Australian Index MINIs

ICE Futures U.S., Inc.

Product Disclosure Statement

Corporate bonds/notes

Writing options and margins

BBSW Methodology. 21st May BBSW Methodology 1/9

For personal use only

Competition, Reliability and Hedge Market Developments in NZ. Carl Hansen New Zealand Electricity Authority

Product Disclosure Statement Margin FX and Contracts for Difference

ISIN Guide. Austraclear. September 2017

ACQUISITION OF BOMEN SOLAR FARM WEDNESDAY, 17 APRIL 2019

For personal use only

AMP Subordinated Notes 2

CUSTOMERS MAY LOSE MORE THAN THE AMOUNT OF FUNDS IN THEIR CFDS, MARGIN FX AND COMMODITIES ACCOUNT.

Clearing Manager. Financial Transmission Rights. Prudential Security Assessment Methodology. 18 September with September 2015 variation

For personal use only

Product Disclosure Statement

Product Disclosure Statement CommSec CFDs

19 DECEMBER 2016 COMPULSORY ACQUISITION OF REMAINING SHARES IN UGL LIMITED

Sonic Healthcare opens Share Purchase Plan

For personal use only

ASX/MEDIA ANNOUNCEMENT

M E M O R A N D U M. Philadelphia Board of Trade Members and Member Organizations

SHARE PURCHASE PLAN.

INTRODUCTION OF DIVIDEND REINVESTMENT PLAN

For personal use only

Dividend Reinvestment Plan. Pendal Group Limited ABN

Appendix 3B. The number of PERLS VI to be issued is indicative only. The final number of PERLS VI actually issued may be more or less.

ASX Code Number of Options Exercise Price Expiry Date MLXAK 1,000,000 $ July MLXAI 50,000 $ November 2014

FIXED RATE BILL FACILITY FINANCING COSTS

Appen Limited ACN

Managing Risk in Electricity Markets

A full copy of the DRP rules and frequently asked questions and answers, are attached with this letter.

TRADING STRATEGY SERIES LEARN HOW TO SPOT OPPORTUNITIES IN VOLATILE MARKETS fpmarkets.com.au

ABN Issue Date: 3 April 2018

PROSPECTUS. Eligible Shareholders may apply for Notes and Options in excess of their Entitlement.

Profit from a falling share price

13 June May Companies Announcement Office ASX Limited 20 Bridge Street SYDNEY NSW Issue of Incentive Option Scheme Options

1 August ASX Market Announcements ASX Limited Level 4 20 Bridge Street SYDNEY NSW Dear Sir/Madam APPENDIX 3B ISSUE OF UNLISTED OPTIONS

Capital raising. 17 April 2018 NEXTDC LIMITED ACN

Chapter 253A Options on Japanese Yen/U.S. Dollar (JPY/USD) Futures

ASX 24 OPERATING RULES

For personal use only

For personal use only

PJM FTR Center Users Guide

For personal use only

Please find attached a copy of the letter which has been sent to the Company s Shareholders today advising details of the Company s rights issue.

Chapter 251A Options on British Pound Sterling/U.S. Dollar Futures

Attached is a letter sent to Eligible Retail Shareholders in respect of the Retail Entitlement Offer.

Appendix 3B. New issue announcement, application for quotation of additional securities and agreement

2 August Company Announcements Office Australian Securities Exchange 4 th Floor 20 Bridge Street SYDNEY NSW 2000.

OPTION TERMS. 2. The full terms of the Series C Options are set out below.

For personal use only

Transcription:

ASX New Zealand Electricity Futures & Options

Disclaimer of Liability Information provided is for educational purposes and does not constitute financial product advice. You should obtain independent advice from an Australian financial services licensee before making any financial decisions. Although ASX Limited ABN 98 008 624 691 and its related bodies corporate ( ASX ) has made every effort to ensure the accuracy of the information as at the date of publication, ASX does not give any warranty or representation as to the accuracy, reliability or completeness of the information. To the extent permitted by law, ASX and its employees, officers and contractors shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided or omitted or from any one acting or refraining to act in reliance on this information. Copyright 2013 ASX Limited ABN 98 008 624 691. All rights reserved 2013. Exchange Centre, 20 Bridge Street, Sydney NSW 2000 Telephone: 131 279 www.asx.com.au

Contents The New Zealand Electricity Market 2 ASX New Zealand Electricity Futures Contract Specifications 3 Monthly Base Load Futures Contracts Quarterly Base Load Futures Contracts Quarterly Peak Load Futures Contracts ASX New Zealand Electricity Options Contract Specifications 6 Average Rate Base Load Quarterly Options Contracts Calendar Year Base Load Strip Option Contracts 1

The New Zealand Electricity Market The New Zealand compulsory pool market is a complex system of pricing nodes across the North and South Islands. Similar in design to other electricity markets, New Zealand s size and fuel dynamics create significant market risks that need to be managed. Futures and options contracts represent very effective tools to help market participants manage these risks. Strong interest from financial players and new entrants to participate in New Zealand electricity derivatives bodes well for the continued success of this market. Otahuhu Benmore Otahuhu grid reference point represents the North Island of New Zealand. Benmore grid reference point represents the South Island of New Zealand. ASX New Zealand Electricity Futures and Options are standardised and centrally cleared contracts for difference (CFDs) that are cash settled against two grid reference points Otahuhu & Benmore in the New Zealand Electricity Market. New Zealand Electricity Futures and Options traded on ASX facilitate efficient price discovery and counter-party risk transfer; economic signals for investment; hedging cover for new entrants; and in turn create greater competition within New Zealand s wholesale and retail electricity markets. The involvement of financial market participants in the market aids liquidity and risk transfer benefiting participants in the New Zealand Electricity market and electricity consumers. 2 Otahuhu North Island Benmore South Island

ASX New Zealand Electricity Futures Contract Specifications Monthly Base Load Futures Contracts Contract Unit 1 MW of electrical energy per hour for the Otahuhu and Benmore grid reference point in New Zealand base load period from 00:00 hours Monday to 24:00 hours Sunday over the duration of the Contract Month. For example: the size (in Megawatt hours) of each contract month will vary depending on the number of days and base load hours within the month, as follows: A 28 day contract month will equate to 672 Megawatt hours; A 29 day contract month will equate to 696 Megawatt hours; A 30 day contract month will equate to 720 Megawatt hours; A 31 day contract month will equate to 744 Megawatt hours. Trading Hours 10.30am 4.00pm NZST Price Quotation Prices are quoted in New Zealand dollars per Megawatt hour. Last Trading Day Last business day (in New Zealand) in the calendar month. Contract Months January, February, March, April, May, June, July, August, September, October, November, December, up to 3 months ahead such that market participants are always able to trade a minimum of the current calendar month. Cash Settlement Day The fourth business day (in New Zealand) after the expiry of the contract month. Commodity Code ED = Otahuhu EH = Benmore Cash Settlement Price The Cash Settlement Price is calculated by taking the arithmetic average of the Wholesale Electricity Market base load spot prices on a half hourly basis over the Contract Month, rounded to the nearest cent. A Provisional Cash Settlement Price will be declared on the first Business Day after expiry of the Contract and shall be later confirmed on the third Business Day after expiry. Minimum Price Movement The minimum fluctuation is NZD $0.05. Cash Settlement Process Upon the fourth Business Day after the expiry of the Contract, the Contract will be cash settled at the Cash Settlement Price confirmed on the third business day of the Contract Month. The final settlement price is rounded to the nearest cent. All bought and sold contracts in existence as at the close of trading in the Contract Month shall be settled by the ASX Clear (Futures) at the Cash Settlement Price. Tick Size Tick sizes under a NZD $0.05/MWh price fluctuation: A 672 MWh contract month has a tick size of $33.60; A 696 MWh contract month has a tick size of $34.80; A 720 MWh contract month has a tick size of $36.00; A 744 MWh contract month has a tick size of $37.20. Cash Settlement Value The Cash Settlement Value is the Cash Settlement Price multiplied by the number of Megawatt hours (MWh) in the underlying Contract Month. 3

4 Quarterly Base Load Futures Contracts Contract Unit 1 MW of electrical energy per hour for the Otahuhu and Benmore grid reference point in New Zealand base load period from 00:00 hours Monday to 24:00 hours Sunday over the duration of the Contract Quarter. For example: the size (in Megawatt hours) of each contract quarter will vary depending on the number of days and base load hours within the quarter, as follows: A 90 day contract quarter will equate to 2,160 Megawatt hours; A 91 day contract quarter will equate to 2,184 Megawatt hours; A 92 day contract quarter will equate to 2,208 Megawatt hours. Trading Hours 10.30am 4.00pm NZST Price Quotation Prices are quoted in New Zealand dollars per Megawatt hour. Last Trading Day Last business day (in New Zealand) in the calendar quarter. Contract Months March, June, September, December. At any point in time there will be between 13 and 17 quarter months listed with a minimum of three calendar year strip products available. Cash Settlement Day The fourth business day (in New Zealand) after the expiry of the contract quarter Commodity Code EA = Otahuhu Base Load Quarter Electricity Futures EE = Benmore Base Load Quarter Electricity Futures EB = Otahuhu Base Load Electricity Strip Products EF = Benmore Base Load Electricity Strip Products Cash Settlement Price The Cash Settlement Price is calculated by taking the arithmetic average of the Wholesale Electricity Market base load spot prices on a half hourly basis over the Contract Quarter, rounded to the nearest cent. A Provisional Cash Settlement Price will be declared on the first Business Day after expiry of the Contract and shall be later confirmed on the third Business Day after expiry. Minimum Price Movement The minimum price fluctuation is NZD $0.05. Cash Settlement Process Upon the fourth Business Day after the expiry of the Contract, the Contract will be cash settled at the Cash Settlement Price confirmed on the third business day of the Contract Quarter. The final settlement price is rounded to the nearest cent. All bought and sold contracts in existence as at the close of trading in the Contract Quarter shall be settled by the ASX Clear (Futures) at the Cash Settlement Price. Tick Size Tick sizes under a NZD $0.05/MWh price fluctuation: A 2,160 MWh contract quarter has a tick size of $108.00 A 2,184 MWh contract quarter has a tick size of $109.20 A 2,208 MWh contract quarter has a tick size of $110.40 Cash Settlement Value The Cash Settlement Value is the Cash Settlement Price multiplied by the number of Megawatt hours (MWh) in the underlying Contract Quarter.

Quarterly Peak Load Futures Contracts Contract Unit 1 MW of electrical energy per hour based on a peak load profile. Where the peak load profile is defined as the Wholesale Electricity Pool Market peak load period from 07:00am hours to 10:00pm hours Monday to Friday (excluding Public holidays and any other days determined by ASX) over the duration of the Contract Quarter. For example: the size (in Megawatt hours) of each contract quarter will vary depending on the number of days and peak load hours within the quarter, as follows: A 58 day contract quarter will equate to 870 Megawatt hours; A 59 day contract quarter will equate to 885 Megawatt hours; A 60 day contract quarter will equate to 900 Megawatt hours; A 61 day contract quarter will equate to 915 Megawatt hours; A 62 day contract quarter will equate to 930 Megawatt hours; A 63 day contract quarter will equate to 945 Megawatt hours; A 65 day contract quarter will equate to 975 Megawatt hours; A 66 day contract quarter will equate to 990 Megawatt hours. Trading Hours 10.30am 4.00pm NZST Price Quotation Prices are quoted in New Zealand dollars per Megawatt hour. Last Trading Day Last business day (in New Zealand) in the calendar quarter. Contract Months March, June, September, December. Listed quarters are available such that market participants can trade between 13 and 17 calendar quarters ahead. Cash Settlement Day The fourth business day (in New Zealand) after the expiry of the contract quarter Commodity Code EC = Otahuhu EG = Benmore Cash Settlement Price The Cash Settlement Price is calculated by taking the arithmetic average of the Wholesale Electricity Market peak load spot prices on a half hourly basis over the Contract Quarter, rounded to the nearest cent. A Provisional Cash Settlement Price will be declared on the first Business Day after expiry of the Contract and shall be later confirmed on the third Business Day after expiry. Minimum Price Movement The minimum price fluctuation is NZD $0.05. Cash Settlement Process Upon the fourth Business Day after the expiry of the Contract, the Contract will be cash settled at the Cash Settlement Price confirmed on the third business day of the Contract Quarter. The final settlement price is rounded to the nearest cent. All bought and sold contracts in existence as at the close of trading in the Contract Quarter shall be settled by the ASX Clear (Futures) at the Cash Settlement Price. Tick Size Tick sizes under a NZD $0.05/MWh price fluctuation: A 870 MWh contract quarter has a tick size of $43.50 A 930 MWh contract quarter has a tick size of $46.50 A 990 MWh contract quarter has a tick size of $49.50 Cash Settlement Value The Cash Settlement Value is the Cash Settlement Price multiplied by the number of Megawatt hours (MWh) in the underlying Contract Quarter. 5

ASX New Zealand Electricity Options Contract Specifications 6 Average Rate Base Load Quarterly Options Contracts Underlying Commodity Base Load Calendar Quarter Electricity Futures Contract (Benmore, Otahuhu) Contract Quarters March, June, September, December, minimum of 8 calendar quarters ahead. Commodity Codes EA = Otahuhu EE = Benmore Price Quotation Prices are quoted in New Zealand dollars per Megawatt hour. Minimum Price Movement The minimum fluctuation is NZD $0.01 per MHh. Exercise Prices Set at intervals of NZD $1.0 per MWh. New option exercise prices created automatically as the underlying futures contract price moves. Trading Hours 10.30am 4.00pm NZST Contract Expiry 4:00pm NZST on the last business day, in New Zealand, of the Calendar Quarter (as per the underlying futures contract) Declaration Date The day and time at which the final Settlement Price of the underlying Base Load Calendar Quarter Electricity Futures Contract is declared. Reference Price for Option Exercise In accordance with the final Settlement Price of the underlying futures contract as determined on the Third Business Day after the Final Trading Day. Method of Options Exercise On the Third business day after the Final Trading Day auto exercise In-the-money, Discard At-the-money and Out-of-the-money options. Options can be exercised manually up to 12:30pm NZST on any trading day. A request for deny-auto-exercise can be submitted up to 12:30pm NZST on the final trading day.

Calendar Year Base Load Strip Option Contracts Underlying Commodity 1 MW of electrical energy per hour on a base load profile for the respective point (Benmore, Otahuhu) over the duration of a Calendar Year. Contract Years Put and call options available on up to 3 calendar year strip futures products. Commodity Code EB = Otahuhu EF = Benmore Price Quotation Prices are quoted in New Zealand dollars per Megawatt hour. Minimum Price Movement The minimum fluctuation is NZ $0.01. Exercise Prices Set at intervals of NZ $2.50. New option exercise prices created automatically as the underlying futures contract price moves. Contract Expiry Options will cease trading at 12:00 noon NZST on the last trading day. The last trading day shall be the day 6 weeks prior to the day immediately preceding the commencement of the calendar year for the underlying strip futures product. If this day is not a business day in New Zealand then the following business day will be the expiry day. ASX will publish expiry dates in advance of new contracts being listed. Settlement Method Options may be exercised on any business day up to and including the day of expiry. In-themoney options are not automatically exercised at expiry. Buyers may exercise in, at and outof-the-money option positions held, by lodging a notice of exercise. On receipt of the exercise request, the options will be exercised against a random selection of seller positions, and the resultant futures legs automatically recorded in the buyer and seller s account. 7

ABOUT ASX ASX Group (ASX) is one of the world s leading exchange groups. We operate a fully integrated exchange across multiple asset classes equities, fixed income and derivatives We service a wide range of retail, institutional and corporate customers, directly and through intermediaries We offer a broad range of services that allow our customers to invest, trade and manage risk. This includes listings, trading, post-trade services, and technical and information services We operate infrastructure that supports the systemic stability of Australia s financial markets and is critical for the efficient functioning of the nation s economy, economic growth and position in the Asia Pacific region More information about ASX can be found at www.asx.com.au

Exchange Centre, 20 Bridge Street, Sydney NSW 2000. Telephone: 131 279 www.asx.com.au

2024 © financedocbox.com Privacy Policy | Terms of Service | Feedback