There are three types of markets in Ontario’s wholesale electricity market:

• Real-time markets - affect the actual delivery and use of electricity. The real-time markets for energy and operating reserve form the core of the IESO-administered markets (operating reserve is the replacement power that can be called upon in case of equipment failure or emergency.)
  
  
• Financial markets - deal only with the transfer of money and financial risk; they do not affect the actual delivery and use of electricity.
  
  
• Procurement markets - enable the IESO to ensure the reliability of Ontario’s power system by acquiring services such as black-start capability (black-start capability is a generator’s ability to help restore the province’s power system without relying on an external supply of electricity.)