Abstract: The connection between the medium & long-term trading and the spot market is one of the key factors considered in the construction of spot markets. The centralized spot market in Shanxi province, in which both the power generation and consumption participate in the tradings, has gone through several settlement trial operations under various typical grid circumstances. This paper analyzes the problems of marketized medium & long-term trading connected with the spot market in Shanxi province. It points out that the key to solve the problems is to establish the capacity compensation mechanism as soon as possible, and to carry out the time division medium & long-term trading fitting well with the spot markets. Combining with the spot market settlement trial operation, a new time division medium & long-term trading mechanism is designed, including the trading modes, the trading cycles, the contract decomposition, the risk control, and so on.