NZX Dairy Derivatives have developed significantly since 2010 with additional participants joining the market and volume and open interest growing rapidly. The products are entering a new phase of liquidity. As a result, NZX proposes to engage in a consultation with the market on enhancement of its existing surveillance and monitoring arrangements.
Proposed enhancements include a review of delivery month position limits, introduction of a requirement for the aggregation of exposures and a requirement for participants to provide additional daily reporting on the beneficial ownership of contracts.
This consultation and the proposed enhancements are to ensure that the market continues to operate in a fair, orderly and transparent manner and to ensure best practice in line with international markets.
NZX Head of Derivatives Kathryn Jaggard commented: “Given that the NZX Dairy Derivatives market has been in operation since October 2010, NZX considers this an appropriate time to review the existing surveillance arrangements.”
NZX proposes to conduct the review in two stages.
NZX is seeking initial feedback from interested parties in relation to the topics outlined within an initial discussion document.
NZX then plans to consult on any particular changes which may be developed following consideration of feedback received.
The consultation paper and information about making a submission can be viewed here:
Submissions should be sent to consultation@nzx.com
The closing date for submissions is 5pm August 7, 2015.
For further information please contact:
Kate McLaughlin
Corporate Communications
T: 09 309 3654
M: 027 533 4529
E: kate.mclaughlin@nzx.com
