Product Specifications

Introduction

TOD Markets offers a range of derivative products, providing market participants with reliable tools to hedge price volatility within the National Electricity Market (NEM). These products use the AEMO Regional Reference Price (RRP) at the relevant node, allowing Market Participants to manage their market exposure effectively. 

Transaction Fees

Product Overview

1. Quarterly SWAP Contracts 

2. Annual SWAP Contracts

3. Weekly Energy-only Contracts (Capped at $300 per trading interval) 

4. Quarterly Flat Cap Contracts ($300/MWh Cap) 

5. Quarterly Flat Cap Contracts ($600/MWh Cap) 

6. Quarterly Floor Contracts (Strike Price at $0/MWh) 

Quarterly SWAP Contracts

• Scope: Covers quarterly periods (Q1–Q4). Contracts are available for Time-of-Day (TOD) trading periods, including Overnight (ON), Morning Peak (MP), Mid-Day (MD), Evening Peak (EP), Late Evening (LE), and Flat Day (FD).

• Fixed Price: Agreed contract price per MWh

• Floating Price: AEMO RRP at the relevant Regional Reference Node per Trading Interval. 

• Settlement Payment: Calculated as the difference between fixed and floating prices per trading interval, following the AEMO NEM settlement schedule. 

Annual SWAP Contracts

• Scope: Covers annual periods in Financial Year and Calendar Year formats. Contracts are available for Time-of-Day (TOD) trading periods, including Overnight (ON), Morning Peak (MP), Mid-Day (MD), Evening Peak (EP), Late Evening (LE), and Flat Day (FD).

• Fixed Price: Agreed contract price per MWh, flat price over the contract term.

• Floating Price: AEMO RRP at the relevant Regional Reference Node per Trading Interval. 

• Settlement Payment: Calculated as the difference between fixed and floating prices per trading interval, following the AEMO NEM settlement schedule. 

Weekly Energy-only Contracts (Capped at $300 per Trading Interval)

• Scope: Covers a one-week period aligned with the NEM settlement week (1–52) Sunday-Saturday. Contracts are available for Time-of-Day trading periods, including Overnight (ONE), Morning Peak (MPE), Mid-Day (MDE), Evening Peak (EPE), Late Evening (LEE), and Flat Day (FDE).

• Fixed Price: Agreed Contract Price. 

• Floating Price: Lesser of the AEMO RRP or $300/MWh per trading interval. 

• Settlement Payment: Aligned with the NEM settlement calendar. 

• Capped Exposure: Limits payouts to $300/MWh if the RRP exceeds $300/MWh during any trading interval. 

• Rolling Contracts: Continuous weekly access with two rolling weekly contracts. 

Quarterly Flat Cap Contracts $300x - C3X

• Scope: Caps exposure above $300/MWh per Trading Interval for the quarter. 

• Settlement Payment: Calculated on the difference between the floating price and the cap ($300/MWh), following the NEM settlement calendar. 

• Premium Payment: Payable on the first NEM settlement date in the Quarter, or for Balance of Quarter the next AEMO NEM Payment date in the contract period, unless that date is within two local business days of the next NEM settlement date, in which case the payment may be made on the subsequent NEM settlement date.

Quarterly Flat Cap Contracts $600x - C6X 

• Scope: Caps exposure above $600/MWh per Trading Interval for the quarter. 

• Settlement Payment: Based on the difference between the Floating Price and the cap ($600/MWh), following the NEM settlement calendar. 

• Premium Payment: Payable on the first NEM settlement date in the Quarter, or for Balance of Quarter the next AEMO NEM Payment date in the contract period, unless that date is within two local business days of the next NEM settlement date, in which case the payment may be made on the subsequent NEM settlement date.

Quarterly Floor Contracts $0x – F0X 

• Scope: Provides financial protection by setting a price floor at $0/MWh during any Trading Interval within the contract period. 

• Payout for Buyers: Compensation is paid for the amount by which the spot price falls below $0/MWh during any Trading Interval. 

• Payout for Sellers: Sellers pay the difference between the strike price ($0/MWh) and the negative spot price, ensuring buyer protection from negative prices. 

• Settlement Payment: Based on the difference between the floating price (below $0/MWh) and the strike price, tied to the AEMO NEM settlement calendar. 

• Premium Payment: Payable on the first NEM settlement date in the Quarter, or for Balance of Quarter the next AEMO NEM Payment date in the contract period, unless that date is within two local business days of the next NEM settlement date, in which case the payment may be made on the subsequent NEM settlement date.

Annual Cap and Floor Contracts

Annual strips of $300x Caps, $600x Caps, and $0x Floors operate equal to four-quarterly contracts.
Premium is payable at the start of each quarter based on the first NEM settlement calendar, where available. Where the NEM Settlement Calendar isn't available, the premium payment date is estimated as follows:

Understanding the Product Codes

Each product in our suite is identified by a unique code that provides a clear reference to the underlying product, baseline reference price, contract term, and time of day. 

Codes are structured consistently as follows; [Node Code]-[Period Code][Time & Type Code]

Open

Regional Reference Node Codes

Period Codes

Period codes are structured as [Period Label][Year as 2 digits]. So where the code shows ‘YY’ in the examples below, replace that with the last 2 digits of the calendar year. Eg. Q126 is for Quarter 1 2026, and so on.

Quarter Codes

Annual Codes

Annual contracts are aligned with the equivalent calendar and financial years. The code is set out as [period label][year as 2 digits], similar to the quarter code layout.

Week Codes

Weekly Energy contracts are aligned with the NEM settlement week numbers (1–52), providing short-term hedging flexibility. Examples of the code are provided in the table below.

Time & Type Codes

Generally, Caps and Floors will have a common structure [type][threshold]X, Swaps will usually be 2-letter codes and Energy contracts will follow swaps but add a trailing E.