SGX and NZX to Explore Dairy Derivatives Partnership
(16 October 2020 – Singapore, New Zealand) Singapore Exchange (SGX) has signed a non-binding Head of Agreement with the New Zealand Exchange (NZX) relating to a global partnership to grow NZX’s dairy derivatives market together.
The two sides will explore the listing of NZX’s suite of dairy derivatives contracts on SGX’s trading and clearing platforms.
"This would see the NZ exchange bring its dairy product development expertise and client relationships, while leveraging SGX's global market connectivity, strong Asian presence and international distribution, to scale growth and liquidity in the trading of dairy derivatives," the SGX statement said.
The partnership "demonstrates that exchanges can collaborate for mutual benefit and the betterment of the wider industry," said SGX chief executive Loh Boon Chye.
“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 market expertise, insight and ongoing marketing and sales in a franchise that has been built from the ground up,” said NZX Chief Executive Mark Peterson.