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Commercial market making scheme

Details

RFx ID : 23851919
Tender Name : Commercial market making scheme
Reference # :
Open Date : Wednesday, 20 January 2021 9:00 AM (Pacific/Auckland UTC+13:00)
Close Date  : Friday, 12 March 2021 5:00 PM (Pacific/Auckland UTC+13:00)
Tender Type : Request for Information (Market research) (RFI)
Tender Coverage : Sole Agency  [?]
Categories :
  • 80000000 - Management and Business Professionals and Administrative Services
  • 84000000 - Financial and Insurance Services
  • 93000000 - Politics and Civic Affairs Services
Regions:
  • New Zealand
Required Pre-qualifications : None
Contact : HME Procurement
commercialmarketmaking@ea.govt.nz
Alternate Physical Delivery Address  :
Alternate Physical Fax Number  :
Overview

The Authority is looking for organisations interested in providing market making services.

The Authority reviewed market making arrangements in the New Zealand futures market throughout 2020. The Authority is now pursuing an approach that further secures the benefits of the current arrangements while enhancing efficiency and improving trust and confidence in the market.

A commercial market making approach will build on the current arrangements, where market making is provided by the four largest physical participants in the New Zealand electricity market.

The Authority wants to establish an efficient commercial market making scheme through the initial appointment of one or more commercial market makers to provide market making services along with the existing set of market makers. Commercial providers can be based locally or internationally and will be paid a fee for providing market making services. The fee will be determined via a competitive tender.

The Authority wants to hear from potential service providers interested in providing market making services under the commercial scheme.

Through the Request for Information the Authority will begin discussions with potential commercial scheme participants wishing to contribute to the design of the commercial scheme.

The Authority will make an informed decision about the establishment of the commercial scheme based on information and feedback provided by a broad range of stakeholders.

It is important that market making services support a robust forward price curve and enable efficient risk management for the long-term benefit of consumers. Respondents’ feedback will be considered as we setup a commercial scheme that efficiently meets the needs of New Zealand electricity consumers.

The Authority will use the information provided by respondents to further develop the commercial scheme and shape the next stages of the procurement process. The Authority intends to undertake two further stages of procurement consisting of:
• an open Registration of Interest to identify a shortlist of potential commercial scheme service providers; followed by
• a closed Request for Proposal to shortlisted respondents with the objective of appointing one or more service providers to provide commercial market making services under the commercial scheme.

For more information please email commercialmarketmaking@ea.govt.nz