ASX Managing Director and Chief Executive Officer, Richard Humphry, said the move followed indications of support and demand for the new contracts from industry participants. "Consistent with our strategy of broadening our product range and offering innovative futures contracts, ASX is pleased to offer these new products. The Australian agricultural industry participants are very large users of contracts traded overseas and have indicated a preference to trade locally."
ASX has developed the new contracts to ensure they are appropriate for local conditions and mirror existing trading in the underlying track market. ASX has consulted with key industry participants and welcomes the support we have received .
ASX has contracted Australian Commodity Investments (ACI) to assist in the development of these agricultural futures products. ACI principals include Man Financial (Man), the world's largest independent futures broker.
"Man welcomes the opportunity of working with ASX on this project and looks forward to participating in a vibrant new market," said Kevin Davis, the Global CEO of Man Financial.
"Man is a world leader in providing risk management services to its clients and we see this as a unique opportunity to be involved from the contract development level. There are many successful regional commodity contracts around the world and we believe that our clients will welcome the opportunity to manage their risk locally," said Tony Fay, Managing Director of Man Financial Australia Ltd.
"With consolidation of major participants in the Australian grain market, these new products will provide an avenue for new entrants into the grain trade," said Phillip Pyle, Executive Manager Grain Marketing, Ausbulk. "These products will help existing players address credit.
1 ASX Futures Exchange Pty Limited (ABN 18 006 599 364) is a wholly owned subsidiary of Australian Stock Exchange
