Tomorrow marks the launch of the latest additions to NZX's Dairy Futures suite.
Skim Milk Powder (SMP) and Anhydrous Milk Fat (AMF) Futures will join Whole Milk Powder (WMP) Futures, launched in October 2010. These three dairy futures represent all the core ingredients of globally traded dairy commodities. They will be available to the worldwide dairy industry for the first time, from New Zealand.
WMP, SMP and AMF represent the three vital and interchangeable components of dairy commodities that form the global “Bucket of Milk”. All three products will trade on one exchange and clear through one clearing house.
“Having the protein and fat components of milk available for trading in the futures market, on one market place, provides significant hedging and trading opportunities for all participants in the globally traded dairy commodities market,” said Fiona Mackenzie, NZX Head of Markets.
“When NZX launched WMP last year we promised the market we would get a full suite of core products up on the board and available for trading as soon as possible. Adding AMF and SMP to the mix completes the first step in meeting global customer demand for risk management tools,” said Mackenzie.
NZX also plans to provide options on all three of its dairy futures later this year.
“Now that these products are available for trading, NZX and the dairy industry have a real opportunity to build liquid and viable risk management tools for all participants in the dairy supply and process chain, now and into the future,” said Mackenzie.
SMP and AMF Futures will be traded alongside WMP Futures on the NZX Derivatives Market, and are subject to the NZX Derivatives Market Rules and Procedures.
FTSE Mondo Visione Exchanges Index:
NZX Tops Up Global "Bucket Of Milk"
Date 17/02/2011