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- Release Date: 11/04/12 12:32
- Summary: DAIRY: NZX: NZX Dairy Futures break through 20,000 lots traded
- Price Sensitive: No
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NZX
11/04/2012 10:32
DAIRY
REL: 1032 HRS NZX Limited
DAIRY: NZX: NZX Dairy Futures break through 20,000 lots traded
NZX Dairy Futures break through 20,000 lots traded
11 April 2012 - NZX Dairy Futures today passed the critical milestone of
20,000 lots traded in the 18 months since launch in late 2010.
Even more significant is the growth momentum in these products: it took just
on a year for the first 10,000 lots to be traded, whereas the second 10,000
lots took just four months.
"This is a real milestone for the product and demonstrates clearly that
liquidity is building and participation is growing. Support from the industry
in using these contracts has been tremendous and that continuing and growing
participation means NZX Dairy Futures are the most liquid tool available for
managing price risk in globally traded dairy commodities," said Kathryn
Jaggard, Head of Derivatives at NZX.
December, January and February are traditionally months with lower levels of
activity due to global holidays, but March 2012 saw activity kick back in
with a record volume month. March also recorded the largest volume day and
the largest volume week in the history of NZX Dairy Futures.
Average daily volume is now at an all time high of over 200 lots per day.
"NZX Dairy Futures are now in place where many super liquid futures contracts
started, with a good base of liquidity and growing global support. What is
pleasing is that we are also seeing increased activity in this market from
customers in Asia who are hedging dairy purchases and we expect that activity
to increase," said Jaggard.
"This is a great result for those looking for viable tools to mitigate risk.
Certainly the dairy industry has been seeking the development of such tools
in recent years and it is their endorsement of contracts such as NZX Dairy
Futures that makes a market work," said NZX CEO Mark Weldon.
ENDS
Attachment: NZX Dairy Futures Trading Volumes graph
End CA:00221693 For:NZX Type:DAIRY Time:2012-04-11 10:32:52
