An NZX stock exchange display in the foyer of Quay Towers. Photo / Kenny Rodger
An NZX stock exchange display in the foyer of Quay Towers. Photo / Kenny Rodger
New Zealand stock market operator NZX has accredited American company Straits Financial to access its growing dairy derivatives market.
Straits has been accredited as a general clearing, trading and advising participant for the NZX dairy derivatives market.
It is the first US clearing member to receive approval since authorisation wasgranted from the US Commodity Futures Trading Commission in February last year.
NZX launched the dairy derivatives market in October 2010 with the aim of becoming the global hub for trading tied to New Zealand's biggest export commodity. Derivative volumes hit a record 35,000 last month and volumes this year are up 119 per cent on a year earlier as increased liquidity draws in more trading and demand for risk management products rises in the face of uncertainty about the outlook for dairy prices.
The addition of Straits is expected to further boost dairy derivative trading on the NZX. Straits is a significant provider of services to agricultural hedgers in North America, including many dairy customers, and has it has extensive Asian business.
