NECA sought to amend the prudential framework of the code to provide for:
The option of reducing a participant's maximum credit limit (MCL) by allowing participants to elect to reduce their payment period to 14 days so that the credit period over which the MCL is calculated decreases from 42 to 28 days;
An extension of the settlement reallocation provisions to allow participants to lodge reallocation requests after, rather than before, the end of the relevant trading interval;
The option of lodging a reallocation request in satisfaction of a call notice;
The ability to terminate a reallocation transaction early with the consent of both parties and NEMMCO; and
A change to the period during which a market participant must remedy a default event before suspension from trade may occur from 24 hours to 1.00pm Sydney time on the next business day following the date of issue of the default notice.
The proposed amendment to the settlement residue auction arrangements allows NEMMCO to exclude certain small players from participation in the settlement residue auctions.
Two conditions of authorisation were imposed. The first one dealing with the time allowed to remedy a default and the second dealing with who should specifically be excluded for SRA's.