GENERAL: NZX: NZX Launch Date for Global Whole Milk Powder Futures

26 Aug 2010 9:19 am

NZX 26/08/2010 GENERAL

REL: 0919 HRS NZX Limited

GENERAL: NZX: NZX Launch Date for Global Whole Milk Powder Futures

NZX Launch Date for Global Whole Milk Powder Futures

26 August 2010 - NZX is pleased to announce the launch of its Global Whole Milk Powder Futures ("WMP") contract on 8 October 2010.

NZX Global Whole Milk Powder Futures will be a vital tool for the dairy industry worldwide to manage price risk in the most heavily traded milk powder product in the world.

"Demand for NZX Global WMP Futures has been very strong, particularly from offshore, and we have timed this launch to ensure all participants are ready to support trading from day one," said NZX CEO Mark Weldon.

"New Zealand has proven we are good at dairy. It's what we do. The world recognises this, and now we are bringing the world a tool that is made in New Zealand, globally relevant and built in response to global demand, matching the growing demand for the physical WMP commodity itself," said Weldon.

The NZX contract will be cash settled, providing the market with a simple and efficient risk management tool that does not rely on complicated physical delivery methods.

"The feedback we received from the global dairy industry confirmed that a physically delivered futures contract on globally traded dairy commodities is far from ideal. The overwhelming preference is for cash settlement," said NZX Head of Markets Fiona Mackenzie.

"We owe a huge thanks to the dairy industry in New Zealand and worldwide for their input and support in the development of this product. It is through this support that we have been able to develop a truly global set of dairy risk management tools," said Mackenzie.

NZX would also like to acknowledge the part played by the New Zealand government and officials in enabling this market to be established.

NZX Dairy Futures will be traded on the NZX electronic platform, GlobalVision, and centrally cleared through the new clearing house, operated by New Zealand Clearing Limited.

NZX will bring to the markets a supporting suite of futures and options products throughout 2010 and 2011.

- ENDS -

For more information on how dairy futures work, go to http://www.nzxgroup.com/

If you would like to understand the mechanics of a clearing house, and futures and options, visit

http://blog.nzx.com/

For more information, please contact:

Rowan Macrae NZX Corporate Office Tel. +644 4962874 Mob. +6427 4727599 End CA:00198869 For:NZX Type:GENERAL Time:2010-08-26:09:19:31

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