NZX intends to delist its suite of dairy derivatives contracts from the NZX Derivatives Market and relist equivalent contracts on SGX.
SGX (Singapore Exchange) and NZX (New Zealand Exchange) have signed a strategic partnership agreement to unlock and accelerate the growth potential of NZX’s dairy derivatives.
The partnership brings together the complementary capabilities of the SGX and NZX to scale up market distribution and liquidity in the global dairy derivatives markets, the exchanges said.
The agreement will take effect in the second half of 2021, subject to regulatory approvals, and follows a Heads of Agreement that was mutually signed in October 2020 to explore the listing of NZX’s suite of dairy contracts on SGX’s trading and clearing platforms.
“This partnership brings a world-class suite of dairy derivatives benchmarks and risk management tools to dairy participants and investors in Asia and beyond,” said SGX CEO Loh Boon Chye.
According to NZX Chief Executive Mark Peterson, said NZX will continue to provide dairy product development expertise, market research and product support for new developments and enhancements, and lead engagements with the dairy industry.
“By working together, we can leverage SGX’s global market connectivity, strong Asian presence and international distribution, to scale growth and liquidity in the trading of dairy derivatives.”
As part of the new partnership, NZX intends to delist its suite of dairy derivatives contracts from the NZX Derivatives Market and equivalent contracts will be relisted on SGX. Market participants can expect augmented access via new trading and clearing channels.