Singapore Exchange (SGX) has signed a non-binding Head of Agreement with the New Zealand Exchange (NZX) relating to a global partnership to grow NZX’s dairy derivatives market together.
The two sides will explore the listing of NZX’s suite of dairy derivatives contracts on SGX’s trading and clearing platforms, SGX said in a statement on Wednesday.
NZX will also bring its dairy product development expertise and client relationships, while leveraging SGX’s global market connectivity, strong Asian presence and international distribution, the statement said. NZX launched its daily derivatives market in 2010, which now includes eight futures and options contracts across dairy ingredients, with five member firms connected to the market and two independent software providers.
The partnership builds on the memorandum of understanding signed between the two exchanges in 2018, to expand co-operation in the Asia-Pacific region and promote market development initiatives across multiple product sectors.
Growing Market
«This opportunity offers a further acceleration in liquidity for our global dairy derivatives contracts by harnessing greater access via SGX’s global network of trading and clearing firms, while leveraging NZX’s dairy market expertise, insight and ongoing marketing and sales in a franchise that has been built from the ground up,» Mark Peterson, chief executive of NZX, said about the agreement.
SGX and NZX will consult with their respective market participants and stakeholders, and seek regulatory approvals related to the proposed global partnership in the next few months. If successful, the partnership is expected to be confirmed in the first half of 2021.
