NZX’s dairy derivatives go live on SGX

Singapore Exchange Limited
Company Reg No. 199904940D

2 Shenton Way, #02-02 SGX Centre 1, Singapore 068804
main: +65 6236 8888 fax: +65 6535 6994
sgx.com






News Release

29 November 2021

NZX’s dairy derivatives go live on SGX – with globalised access and
reach

NZX’s suite of dairy derivatives will trade exclusively on Singapore Exchange (SGX) from today –
under a partnership between New Zealand’s Exchange and SGX.

This partnership combines NZX’s market development expertise in dairy derivatives with SGX’s global
distribution capability. The joint stewardship of these important contracts unites NZX’s core dairy
expertise in industry engagement, market research, and product development know-how with SGX’s
international connectivity, under a working strategic partnership.

The partnership will super-charge the industry benchmarks with deeper platform connectivity and
broader client reach.

The listing of the SGX-NZX Global dairy derivatives contract is a result of the strategic partnership
that was entered into between the two exchanges in April 2021, which was designed to unlock and
accelerate the growth potential of the dairy derivatives market that NZX has been developing over
the past 11 years.

NZX Chief Executive, Mark Peterson, said the partnership brings together the complementary
capabilities of the NZX and SGX to scale up market distribution and liquidity in the global dairy
derivatives markets.

“We see this as accelerating market distribution which brings together significantly more buyers and
sellers globally, increasing trading activity and benefiting all dairy participants, including the New
Zealand dairy farmers and processors who find these contracts particularly important in managing
risk.”

Mr Peterson said this enhanced liquidity will be driven by unprecedented access to the dairy
derivatives markets via augmented trading and clearing channels. The number of trading and clearing
firms has been expanded from 4 to more than 70, independent software vendors (ISVs) from 2 to
more than 25, and this would be complemented by SGX’s 10 international offices offering
significantly greater regional sales support.

“With the physical dairy market continuing to evolve, working in partnership with SGX opens up the
potential to grow these derivative products to many multiples of the physical dairy market.” He said
new tools to deal with price volatility and its associated risks are crucial and in huge demand by dairy
processors and end-users.

Singapore Exchange Limited
Company Reg No. 199904940D

2 Shenton Way, #02-02 SGX Centre 1, Singapore 068804
main: +65 6236 8888 fax: +65 6535 6994
sgx.com

Loh Boon Chye, Chief Executive Officer of SGX, said, “The past few months have been extremely
fruitful for both SGX and NZX, as we worked together to execute this first-of-its-kind partnership
between two exchanges to internationalise and grow the liquidity of a well-established product that
will benefit the global dairy industry.”

“Through SGX’s global distribution network and successful derivatives franchise, we look forward to a
close and fruitful collaboration to bring NZX’s suite of dairy derivatives to its next phase of growth.”

NZX launched its dairy derivatives market in 2010, enabling market participants across the dairy
production chain – from farmers through to international manufacturers of dairy products – to have
access to a tool to efficiently manage price risks inherent within global dairy markets.

Over the past 10 years, NZX has grown the contract suite to include eight futures and options
contracts across dairy ingredients including Whole Milk Powder (WMP), Skim Milk Powder (SMP),
Butter (BTR) and Anhydrous Milk Fat (AMF) as well as liquid NZ Milk Price (MKP) contracts.

-End-

About Singapore Exchange

Singapore Exchange is Asia’s leading and trusted securities and derivatives market infrastructure,
operating equity, fixed income, currency and commodity markets to the highest regulatory
standards. It also operates a multi-asset sustainability platform, SGX FIRST or Future in Reshaping
Sustainability Together (sgx.com/first).

SGX is committed to facilitating economic growth in a sustainable manner leveraging its roles as a
key player in the ecosystem, a business, regulator and listed company. With climate action as a key
priority, SGX aims to be a leading sustainable and transition financing and trading hub offering
trusted, quality, end-to-end products and solutions.

As Asia’s most international, multi-asset exchange, SGX provides listing, trading, clearing, settlement,
depository and data services, with about 40% of listed companies and over 80% of listed bonds
originating outside of Singapore. SGX is the world’s most liquid international market for the
benchmark equity indices of China, India, Japan and ASEAN. Headquartered in AAA-rated Singapore,
SGX is globally recognised for its risk management and clearing capabilities. For more information,
please visit www.sgx.com.

About NZX

For more than 150 years we have been creating opportunities for Kiwis to grow their personal wealth
and helping businesses prosper. As New Zealand’s Exchange, we are proud of our record in
supporting the growth and global ambitions of local companies.

NZX operates New Zealand's equity, debt, funds, derivatives and energy markets. To support the
growth of our markets, we provide trading, clearing, settlement, depository and data services for our
customers. We also own Smartshares, New Zealand's only issuer of listed Exchange Traded Funds
(ETFs), and KiwiSaver provider SuperLife. NZX Wealth Technologies is a 100%-owned subsidiary
delivering rich online platform functionality to enable New Zealand investment advisors and
providers to efficiently manage, trade and administer their client's assets. Learn more about us at:
www.nzx.com

Singapore Exchange Limited
Company Reg No. 199904940D

2 Shenton Way, #02-02 SGX Centre 1, Singapore 068804
main: +65 6236 8888 fax: +65 6535 6994
sgx.com


Media Contact

Ho Lily, AVP, Media Communications
SGX
+65 9784 9290
lily.ho@sgx.com

David Glendining, Head of Communications
NZX
+64 27 301 9248
david.glendining@nzx.com