Updated Block Trade Procedures for User Defined Strategy Orders in Australian Electricity Futures and Options on ASX 24

What's this about:
  • ASX 24 Market
  • Trading
  • Product
  • Operations
  • Technology
  • Rules
  • Energy
  • OTC Cleared
  • Australian Electricity
  • Strategy Orders
  • UDC
  • ASX Energy
  • Commodities
  • Block Trade
Notice reference number: 0300.18.03
Date published: 23/03/18
Effective as of: 23/03/18
Last updated: 23/03/18

Effective immediately, ASX has updated Procedure 4820 on Block Trades for Australian Electricity Futures and Options contracts. The following User Defined Strategy orders may also be executed in the Block Trade Facility, exempt of the Minimum Threshold requirement, and submitted to the Market Operator via electronic registration:

·         User Defined Strategy Orders consisting of strip options and/or quarterly futures (which constitute the equivalent of an exchange listed futures strip) with 7 legs or more and;

·         User Defined Strategy Orders which contain a combination of strip option/s and quarterly futures (which constitute the equivalent of an exchange listed futures strip) that the Exchange determines to be a reasonable hedge.

Some examples include:

1.     Futures strip to futures strip – 8 legs (Inter-regional, off-peak, cap-swap)

2.     Strip option strategies with strip futures delta hedge (5 leg single option, 6 leg two options)

Participants must include a common account identifier in the comments field to designate that the trade forms part of a User Defined Strategy order. Each leg of the User Defined Strategy Order must be registered in the Block Trade Facility at or about the same time.

What do I need to do by when?

An Electricity Trade Accept Guide is attached for assistance in entering deals.

Need more information?

Issued by

Ken Chapman – Head of Strategic Delivery, Capital Markets

Contact information

Melissa Tan
+61(02) 9227 0900