New Zealand-listed dairy derivatives contracts may be traded in Singapore from next year under a new deal signed by stock exchanges of the two countries, which first partnered in 2018 to promote dual and secondary listings and exchange-traded funds.
Singapore Exchange (SGX) and New Zealand’s Exchange will consult with their respective market participants and stakeholders and seek regulatory approvals for the move, the bourses say in a joint statement on October 13.
If approved, they expect to list the contracts on SGX as early as the first half of 2021.
“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 expertise,” Mark Peterson, chief executive of the New Zealand bourse, says in the statement.
SGX Chief Executive Officer Loh Boon Chye adds that “we believe our successful commodities derivatives franchise, with its infrastructure and ecosystem, coupled with our global distribution network and strong Asian footprint, will enable us to work with NZX to fuel growth of the dairy derivatives market”.
The New Zealand bourse began listing dairy derivatives in 2010 and now has eight futures and options contracts across a number of products, including milk powder and milk fat.
SGX’s suite of commodity derivatives currently covers iron ore, coking coal, and freight.