The Electricity Authority has appointed Energy Market Services, a division of Transpower, as the manager of its financial transmission rights market.
FTRs are a special type of hedge product which provide protection from exceptional price movements between two parts of the spot market.
The market will initially offer FTRs for Benmore in the South Island and Otahuhu in the North Island.
The Electricity Authority says Energy Market Services was selected by a international open tender process.
The first task for Energy Market Services will be to consult with the electricity industry on the details of FTR auction design.
Meanwhile, the authority has pushed out the start date for FTR auctions to May 2013, saying the original October 2012 start is no longer possible.