Memo
To: NZX Derivatives Market Participants
From: NZX Limited
Date: 30 October 2017
Subject: Amendment to NZX Derivatives Market Procedures
As NZX announced to market today, NZX proposes to launch a new dairy derivative contract, being NZX Derivatives Market Contract No. 10 Options on Global Skim Milk Powder (SMP) Futures (SMP Options) for trading from Q4 2017. The underlying contract for a SMP Option will be one NZX Derivatives Market Contract No. 3 Global Skim Milk Powder (SMP) Future (SMP Future).
To facilitate trading of these products on the Derivatives Market, a number of amendments to the NZX Derivatives Market Procedures (Procedures) are required. NZX hereby notifies the
market that the Procedures will be amended as follows:
1. Part A of Appendix One to the Procedures will be amended to specify the Trading Algorithm that will apply to SMP Options;
2. Part B of Appendix One to the Procedures will be amended to specify the Rounding convention that will apply to SMP Options; and
3. Part C of Appendix One to the Procedures will be amended to specify the Minimum Volume Thresholds that apply to SMP Options.
The amendments described above will take effect on 4 December 2017.
A marked copy of the amended Procedures showing changes from the existing Procedures, can be found at the following link: https://nzx.com/regulation/derivatives-rules.
The full Procedures as amended will be available at www.nzx.com, www.nzxfutures.com and iSearch from 4 December 2017.
For further information, please email info@nzx.com.