A complementarity model for electric power transmission-distribution coordination under uncertainty

•We propose a coordination mechanism between electric power transmission and distribution system operators in the day-ahead stage.•This sectoral coordination is achieved by determining the optimal prices and trading limits at the physical interface of two systems.•The optimal caps on market participation of flexible resources located in the distribution system ensure the safe operation of the distribution system while meeting the flexibility needs of the transmission system.•This coordination is achieved by a stochastic bi-level model to be solved by a multi-cut Benders decomposition method.