Ann: DAIRY: NZX: Amendments to Christmas Trading

• Release Date: 13/12/12 19:24
• Summary: DAIRY: NZX: Amendments to Christmas Trading Hours & Calculation Method
• Price Sensitive: No
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NZX
13/12/2012 17:24
DAIRY

REL: 1724 HRS NZX Limited

DAIRY: NZX: Amendments to Christmas Trading Hours & Calculation Method

Memo
To:      NZX Derivatives Market Participants
From:  NZX Limited
Date:   13 December 2012
Subject:  Amendments to Christmas Trading Hours and the Final
Settlement
   Price Calculation Method

Pursuant to Contract Terms 15.1 and 15.3 of the Futures Contracts and to
Contract 8.1 and 8.3 of the Options Contract, NZX Limited ("NZX") hereby
notifies Participants that each of the WMP Futures, AMF Futures, SMP Futures
and WMP Options Individual Contract Specifications and the WMP Futures, AMF
Futures and SMP Futures Contract Terms and Administrative Procedures will be
amended to reflect the following two changes:

1. Trading Hours

NZX has amended the Individual Contract Specifications, as outlined below, in
order to have the discretion to change the Trading Hours of the Derivatives
Market if and as required, primarily to accommodate shortened Trading Hours
over the upcoming Christmas and New Year holiday period. This will also
ensure that the procedure for determining trading hours in respect of the
Derivatives Market is consistent with the procedure for determining trading
hours in respect of the Cash Markets.

NZX will notify the Market of any change to the standard Trading Hours
specified in the Contract Specifications by email and website notice.

Specifically, NZX will amend the Individual Contract Specifications for the
following Futures and Options Contracts:

NZX Derivatives Market Contract No. 1 Global Whole Milk Powder (WMP) Futures
("WMP Futures");
NZX Derivatives Market Contract No. 2 Global Anhydrous Milk Fat (AMF) Futures
("AMF Futures");
NZX Derivatives Market Contract No. 3 Global Skim Milk Powder (SMP) Futures
("SMP Futures"); and
NZX Derivatives Market Contract No. 4 Global WMP Options.

The "Trading Day" or "Trading Hours" section (as applicable) of each Contract
Specification will be amended by the inclusion of "or as determined from time
to time by NZX by notice to the Market in accordance with the NZX Derivatives
Market Rules and Procedures".

NZX will also amend the term "Trading Day" in the WMP Options Contract
Specification to "Trading Hours" to ensure consistency of terms across all
Futures and Options Contract Specifications.

These amendments will take effect from Tuesday 18th December 2012.

2. Final Settlement Price Calculation Method

As previously announced to the market on 17 October 2012, NZX will change the
final settlement price methodology for certain Futures Contracts. To that
end, NZX will amend the Individual Contract Specifications and the Contract
Terms and Administrative Procedures for the below Futures Contracts for
Contract Months from July 2013 onwards:

NZX Derivatives Market Contract No. 1 Global Whole Milk Powder (WMP) Futures;

NZX Derivatives Market Contract No. 2 Global Anhydrous Milk Fat (AMF)
Futures; and
NZX Derivatives Market Contract No. 3 Global Skim Milk Powder (SMP) Futures.

The above Individual Contract Specifications currently state that Last
Trading Day shall be "the last Business Day preceding the first GDT auction
of the month i.e. trading in the March WMP/AMF/SMP (as applicable) Futures
Contract will expire on the last Business Day immediately preceding the first
GDT auction in April."

NZX will amend the Last Trading Day section of each Contract Specification by
replacing the word "first" with "last" and the word "April" with "March" so
that the definition of Last Trading Day shall then be "the last Business Day
preceding the last GDT auction of the month i.e. trading in the March
WMP/AMF/SMP (as applicable) Futures Contract will expire on the last Business
Day immediately preceding the last GDT auction in March."

In respect of the Contract Terms and Administrative Procedures for each of
the above Futures Contracts, the example provided in the definition of "GDT
Period" under clause 1.1 will be removed.

The amended Contract Specifications and Terms and Administrative Procedures
will be available at http://www.nzxfutures.com/dairy/contract_specifications
from Tuesday 18th December 2012.

NZX has made the above amendments in accordance with the NZX Derivatives
Market Rules.

For further information please email [email protected].
End CA:00231094 For:NZX    Type:DAIRY      Time:2012-12-13 17:24:17