Open Country Dairy has taken its concerns over the dairy futures trading platform a step further, lodging a complaint with the Securities Commission.
The NZX-run futures market will begin trading on October 8th.
Last week, chairman Laurie Margrain told Country99TV he had serious reservations about the platform using Fonterra’s globalDairyTrade online auction as a price reference.
“We just have some concerns, that having the Fonterra [globalDairyTrade] auction as a key input into the contract futures market is potentially a conflict.
"As Fonterra will no doubt participate in the contracts market, there could be a perception that the integrity of the market is damaged."
Mr Margrain says even the perception of price manipulation could compromise the integrity of the market.
Open Country didn’t have an alternative pricing method to the Fonterra auction, but has suggested NZX be encouraged to find one.
