ASX 24 Operating Rules Procedures – Changes to Block Trade Requirements for Australian Electricity Futures &Options
Tue 19 Oct 2021
Market Participants are advised of the following changes to the ASX 24 Operating Rules Procedures: Effective 15 November 2021
Australian Electricity Futures and Options Contracts – Block Trade Minimum Threshold Exemption
The minimum threshold for block trades in Australian Electricity Futures Contracts and Australian Electricity Options Contracts is 25 lots. An exemption will be introduced to allow delta hedged option trading strategies to be reported as a multi-leg block trade where the Options Contract(s) meet the minimum threshold but the Futures Contract providing the hedge does not. In particular, where a multi leg block trade consisting of an Australian Electricity Futures Contract and one or more Australian Electricity Options Contract(s) is reported to the Exchange, and the Market Operator determines that the Futures Contract is a reasonable hedge of the Options Contracts(s), then the minimum threshold for that Futures Contract will be 1 lot.
What do I need to do by when?
ASX 24 Trading Participants should advise customers of the changes to the block trade requirements for Australian Electricity Futures and Options Contracts.
Any questions feel free to contact the commodity team at Commodities@asx.com.au.