NYSE Liffe’s Skimmed Milk Powder Futures Contract Sees First Trades

NYSE Liffe, the Europe-based derivatives business of NYSE Euronext (NYX), today announced that its Skimmed Milk Powder (“SMP”) Futures contract traded for the first time.  Two lots were traded, in the March 2011 and May 2011 delivery months, both at a price of €1,900.  Each contract is equivalent to 24 metric tonnes of skimmed milk powder, meaning that the quantity traded has a value of over €91,000.

NYSE Liffe launched SMP Futures on 19 October to meet customers’ interest in a contract that would enable them to manage their exposure to price movements in the European dairy sector.  The launch followed a two-year-long consultation process in which NYSE Liffe worked closely with the dairy market to create a tool for them to better hedge their price risk.  

Ian Dudden, Director, Commodity Derivatives, NYSE Liffe, said: “This is an important first step along the way to developing a market that will benefit both dairy producers and food manufacturers using dairy products.  We thank our customers for their support, and look forward to continuing to work with them in the coming months to build on this promising new area of our business.”