New Zealand and Singapore exchanges agree on dairy derivatives
New Zealand’s Exchange (NZX) and Singapore Exchange (SGX) have signed an agreement for a global partnership to grow NZX’s dairy derivatives market together, according to the exchanges.
The non-binding agreement signed between both exchanges will explore the listing of NZX’s suite of dairy derivatives contracts on SGX’s trading and clearing platforms.
This would see NZX bring its dairy product development expertise and client relationships, while leveraging SGX’s global market connectivity, strong Asian presence and international distribution, to scale growth and liquidity in the trading of dairy derivatives. Market participants could expect augmented access via current and new trading and clearing channels.
NZX launched its dairy derivatives market in 2010, enabling market participants across the dairy production chain – from farmers through to international manufacturers of dairy products – to efficiently manage price risks inherent within global dairy markets.
Over the past 10 years, NZX has grown the contract suite to include eight futures and options contracts across dairy ingredients including whole milk powder (WMP), skim milk powder (SMP), butter (BTR) and anhydrous milk fat (AMF) as well as liquid NZ milk price (MKP) contracts.