Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


NZX dairy derivatives widen reach with US-based ADMIS

NZX dairy derivatives gain wider reach with addition of US-based ADMIS

By Tina Morrison

March 1 (BusinessDesk) - NZX, the New Zealand financial market operator, has boosted the reach of its dairy derivatives market by linking up with US-based brokerage and clearing firm ADM Investor Services.

Chicago-based ADMIS, which has strong roots in the agricultural commodities market reaching back to the 1930s, has been accredited as a derivatives trading and advising participant and a general clearing participant for the NZX dairy derivatives market. It's the third US-based participant to gain full membership status since NZX was granted authorisation as a foreign board of trade by the Commodity Futures Trading Commission in 2014, Wellington-based NZX said in a statement.

New Zealand is the world’s biggest dairy exporter, selling about $11.57 billion of milk powder, butter and cheese overseas in the year through January. NZX launched the dairy derivatives market in October 2010 with the aim of becoming the global hub for trading tied to the country's biggest export commodity. Dairy derivative volumes rose 109 percent in 2015 as increased liquidity draws in more trading and as demand for risk management products rises in the face of uncertainty about the outlook for dairy prices.

"NZX’s dairy derivatives have evolved into an essential market for a growing number of participants in the global dairy industry looking to manage an increasingly volatile marketplace," said ADMIS president Tom Kadlec.

"We are the leading clearing firm for dairy contracts in the United States and through our sister company, ADM Investor Services International in London, are a lead player in the nascent European market. Joining the NZX ensures ADMIS is at the forefront of providing a complete product offering to commodity customers around the world.”

NZX chief executive Tim Bennett said the addition of ADMIS allows dairy and commodity traders from around the world easier access to the dairy derivatives market, aiding its future growth.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Fuel Leak: Refinery Prepares To Repair Damaged Pipeline

Refining NZ has confirmed that it is to start repairs on a section of its multi-product fuel pipeline which was shut down following a jet fuel leak last Thursday. More>>uption.htm">More>>


StatsNZ: Economy Grows 0.8% In June Quarter

“Strong export and domestic demand underpinned growth this quarter,” national accounts senior manager Gary Dunnet said. “Demand for exports has resulted in strong production growth in manufacturing and service industries.” More>>


Stats NZ: Annual Net Migration Remains High

Annual net migration was 72,100 in the August 2017 year... Migrant arrivals reached 132,200, a new annual record, and migrant departures were 60,100 in the year ended August 2017. More>>


Expert Reaction: Cassini's Grand Saturn Finale

After a 20 year mission, NASA's spacecraft Cassini will meet its demise this week by plunging into Saturn's atmosphere and burning up. More>>


Jurisdiction: Court Rejects Cathay Unit's Retirement Age Of 55 For Pilots

The Supreme Court has backed two Auckland-based Cathay Pacific pilots who claimed local law meant they couldn't be forced to retire at 55. More>>


Supreme Court: AFFCO Loses Lockout Appeal

The essential question in the appeal was whether those who presented themselves for work at the beginning of the 2015/2016 season were at that time “employees” for the purposes of the lockout provision... This Court has unanimously dismissed the appeal. More>>