A dairy futures market launched by the NZX last month is leading overseas rivals and has won endorsement from international bank BNP Paribas, according to the NZHerald.
Kathryn Jaggard, derivatives manager for NZX, said 55 contracts had been traded since the launch of the whole milk powder futures product. The number of trades was meeting expectations.
"Derivative contracts, they grow from a small base into a liquid instrument, unlike equity [initial public offers] that starts off with a bang and then levels out, derivatives contracts are what I call acorns that grow into tall oak trees."
NZX yesterday said international bank BNP Paribas would become a general clearing participant for the NZX Derivatives Market.
"It's excellent news, it's a real endorsement. The contract is seen as having real potential. BNP are a very large entity and very experienced in commodity markets."
The market was building well, she said.
Physically delivered international skimmed milk powder contracts were launched by the Chicago Mercantile Exchange and the NYSE Liffe in May and October respectively, while the German Eurex exchange launched a cash settled skimmed milk powder contract in May. – For more, read the NZHerald