NZX futures contractThis article was originally published in Foodnews
NZX HAS announced that it is launching its Global Whole Milk Powder (WMP) futures contract on 8 October. NZX Dairy Futures will be traded on the NZX electronic platform, GlobalVision, and centrally cleared through the new clearing house, operated by New Zealand Clearing Limited. "Demand for NZX Global WMP Futures has been very strong, particularly from offshore, and we have timed this launch to ensure all participants are ready to support trading from day one," said NZX's chief executive, Mark Weldon. The contract will be cash settled. "The feedback we received from the global dairy industry confirmed that a physically delivered futures contract on globally traded dairy commodities is far from ideal. The overwhelming preference is for cash settlement," commented NZX's head of markets, Fiona Mackenzie.