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Australian Electricity Derivatives

ASX Electricity Futures Contracts are listed for trading on the Australian state regions of NSW, VIC, QLD, and SA.

The Australian Electricity Derivatives market on ASX Energy provides a structured, regulated, and transparent platform for managing electricity price risk via standardized, cash-settled Contracts for Difference (CFDs).

These instruments are referenced to regional spot prices within Australia’s National Electricity Market (NEM), which covers New South Wales (NSW), Queensland (QLD), Victoria (VIC), and South Australia (SA).

Contracts are centrally cleared through ASX Clear (Futures) to mitigate counterparty credit risk (fact sheet PDF).

A broad suite of products supports diverse hedging profiles and market participation:

  • Base Load Futures (monthly, quarterly, yearly strips)
  • $300 Cap Futures
  • Options based on average rate and yearly strips
  • Morning and Evening Peak Load Futures, offering exposure aligned with operational demand periods

The underlying NEM functions as an interconnected wholesale electricity pool managed by the Australian Energy Market Operator (AEMO). AEMO publishes pool prices across each region, facilitating cash settlement of derivatives based on publicly available spot rates.

Regulatory and Operational Framework

  • Legal Framework: Contracts are governed by the ASX24 Operating Rules and the ASIC Market Integrity Rules. Contract specifications are outlined in Schedule 1 of the ASX24 documentation, which takes precedence in cases of discrepancy.
  • Product Listing & Launch: Morning and Evening Peak Load contracts were introduced regionally in mid-2025 (NSW from 30 June; followed by QLD, VIC, and SA).
  • Market Liquidity Support: Liquidity is encouraged via structured market-making incentives and offset margins for correlated instruments.
  • Settlement Method: All products are cash-settled, enabling participation by non-physical players—including financial institutions—without the need to manage physical delivery obligations.

All ASX Electricity Futures and Options Contracts are CFTC approved.

Key Resources