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

 

NZX plans to launch skim milk powder option contract

NZX plans to launch skim milk powder option contract


By Tina Morrison

Oct. 30 (BusinessDesk) - NZX, the financial markets operator, plans to launch a global skim milk powder option contract in December in response to customer demand.

The Wellington-based company said trading volumes in its skim milk powder futures market are up 113 percent this year as interest in its suite of dairy risk management tools increases. The new contract will add to the NZX's existing futures contracts for whole milk powder, skim milk powder, anhydrous milk fat and butter, and its whole milk powder options.

"NZX is continually looking to expand its product offering in response to customer feedback, the addition of a global skim milk powder option contract will provide traders in our global market with another tool to help manage volatility in dairy commodity prices," said NZX head of derivatives Nick Morris.

The skim milk powder option contract is expected to be launched on December 4 and will be settled to the underlying NZX skim milk powder futures contract. An options contract gives the holder the right to buy or sell an asset without an obligation to do so.

New Zealand is the world’s biggest dairy exporter, selling about $13.1 billion of milk powder, butter and cheese overseas in the year through September. 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.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Super Fund/Canada Bid v NZTA: Tow Preferred Bidders For Auckland Light Rail

The two preferred delivery partners for Auckland light rail have been chosen and a final decision on who will build this transformational infrastructure will be made early next year, Minister of Transport Phil Twyford announced. More>>

ALSO:

9.3 Percent: Gender Pay Gap Unchanged Since 2017

“While it has remained flat since 2017, the gender pay gap has been trending down since the series began in 1998, when it was 16.2 percent,” labour market statistics manager Scott Ussher said. More>>

ALSO:

Ex-KPEX: Stuff Pulls Pin On Media Companies' Joint Ad-Buying Business

A four-way automated advertising collaboration between the country's largest media companies is being wound up after one of the four - Australian-owned Stuff - pulled the pin on its involvement as part of a strategic review of its operations ... More>>

Bus-iness: Transdev To Acquire More Auckland And Wellington Operations

Transdev Australasia today announced that it has agreed terms to acquire two bus operations in Auckland and Wellington, reaching agreement with Souter Investments to purchase Howick and Eastern Buses and Mana Coach Services. More>>

ALSO: