Commercial Market Making Scheme - 2024
Tender ID: 530549
Tender Details
Tender Description
The New Zealand Electricity Authority is seeking to establish phase two of the commercial market-making scheme for the New Zealand electricity futures market. This Registration of Interest (ROI) forms the first of a two-stage procurement process.
The Authority would like to hear from potential commercial scheme service providers who have experience in commodities trading and financial services. Suppliers will be asked to showcase their prior experience, credibility, and risk mitigation strategies in providing market-making services.
It is imperative that suppliers create a fit-for-purpose solution, considering their previous experience, the NZ electricity futures market, the needs of the Authority, and the needs of NZ electricity consumers.
It is important that the Authority can ensure continuity of market-making service to participants in the NZ electricity futures market, and therefore it is important the Authority works with market makers who have a strong track record in delivering comparable services, have a good method of managing risks, and understand the challenges with providing this service in NZ.
The Authority seeks to ensure that market-making services enable efficient risk management and support a robust forward price curve. Respondents to the Registration of Interest (ROI) will contribute to providing market-making services for the long-term benefit of NZ electricity consumers.
Successful Respondents from the ROI stage will be invited to provide a proposal at the Request for Proposals (RFP) stage in which at least one commercial market maker will be appointed. Only successful Respondents from this ROI will be invited in the RFP.
Deadline for clarification requests from suppliers: Monday, 17 July 2023
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