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NECA Signs Co-Operation Agreement With Sydney Futures Exchange

Date 29/08/2002

The National Electricity Code Administrator (NECA) and the Sydney Futures Exchange (SFE) have today announced the signing of an agreement committing them to work closely together on their market surveillance and monitoring activities. The memorandum of understanding will allow for continuing co-operation and exchange of information and expertise to ensure both organisations can more effectively fulfil their respective monitoring and regulatory roles.

The agreement comes just before the release of new d-cypha SFE Australian Electricity Futures contracts, which are to be listed on the Sydney Futures Exchange and available for trading from 3 September.

As part of its front-line regulatory obligations, the Sydney Futures Exchange is responsible for ensuring the Exchange's markets are conducted in a fair, orderly and transparent manner in accordance with the Corporations Law and the Exchange's business rules. NECA's role includes supervision, administration and enforcement of the national electricity market rules. One of its objectives under the Code is to work effectively with other regulatory organisations in order to ensure the consistent and effective development of the national electricity market.

In a letter to SFE, Stephen Kelly, NECA's managing director, wrote: "I look forward to the opportunity to work with the SFE, particularly on matters related to the financial aspects of the energy market. We have established similar arrangements with other bodies, including the ACCC and the monitoring and surveillance units of a number of energy markets around the world. These new arrangements can only been seen as a very positive step that will assist both SFE and NECA in understanding better and therefore fostering the essential interaction of the financial and energy markets."

Anne Brown, SFE's general manager, business risk said: "In keeping with SFE's supervisory obligations, and similar initiatives in respect of other SFE markets, this regulatory agreement will assist in further underpinning the integrity of the new electricity futures market. SFE looks forward to a long-term and mutually beneficial relationship with NECA."