The New Zealand Exchange has said it will review its target to introduce electricity derivatives after the country’s foremost generators agreed to work with the Australian Securities Exchange to develop a trading venture.
EnergyHedge – a representative company of New Zealand’s major electricity generators – will develop electricity futures and options with ASX.
John Woods, chair of EnergyHedge, said the firm had held talks with NZX as well, but that it could only support one market. EnergyHedge had chosen ASX, he said, because it could offer greater liquidity within a tight timetable.
ASX’s futures market has more clearing participants, Woods said,...