NZX Granted Registration As Foreign Board Of Trade By CFTC

The US regulatory agency the Commodity Futures Trading Commission (CFTC) has registered NZX as a Foreign Board of Trade under the US Commodity Exchange Act.

The registration will allow NZX to permit direct access to participants in the US to trade NZX Dairy Derivatives on NZX’s trading platform. Whole Milk Powder, Skim Milk Powder and Anhydrous Milk Fat Futures, and Whole Milk Powder Options can be traded on NZX.

NZX CEO Tim Bennett commented: “We are delighted to be able to offer US customers direct access to trade NZX Dairy Derivatives. A number of customers in the US want access to this market to manage risk in globally traded dairy commodities, and we are looking forward to facilitating this.”

Following demand from US and European customers, in August 2013 NZX extended Dairy Derivatives trading opening hours to overlap into their trading day.

"The extension of trading hours has helped to support expansion of global participation in these important risk management tools, and access from the US will be another vital step in building significant liquidity in this market,” he said.

Volume executed in NZX Dairy Derivatives grew by 52% in 2013, with significant growth in the Skim Milk Powder contract, and open interest across all three futures up by more than 300%.