The Settlement Price1 at expiry for all NZX Dairy Futures (WMP, AMF and SMP) (“Dairy Futures Contracts”) is currently calculated by taking a simple average of the winning prices for the relevant product specifications in Contract Period 1 ("C1").
As the market is aware, Dairy America will begin selling product on GDT from 4 October 2011. Under new rules for multiple sellers, to be implemented from 4 October 2011 and published on the GDT website at http://www.globaldairytrade.info/Portals/0/GDT-Market-Rules-MS.pdf, the number of contract periods available in the auction will move from three to four.
From 4 October 2011, the additional delivery period will become C1, the period currently known as C1 will be renamed C2, the period currently known as C2 will be renamed C3 and the period currently known as C3 will be renamed C4.
Delivery period prior to 4 October 2011 Delivery period from 4 October 2011 onwards
N/A C1
C1 C2
C2 C3
C3 C4
NZX wishes to notify the market that the calculation of Settlement Prices for all Dairy Futures Contracts will remain unchanged, as will the actual GDT delivery period from which the Settlement Price is derived. However, C1, as stated in the Dairy Futures Contracts’ Individual Contract Specifications and Contract Terms and Administrative Procedures, will now be known as C2.
The Individual Contract Specifications and Contract Terms and Administrative Procedures for WMP, AMF and SMP Futures will be updated accordingly and published at www.nzxfutures.com.2
