NZX has hit back at claims from Open Country Dairy that its dairy futures platform is flawed.
Open Country chairman Laurie Margrain voiced concerns last week about the new derivatives market using Fonterra’s globalDairyTrade auction as a price reference.
Mr Margrain says using the Fonterra mark to determine the futures cash settlement price could compromise the market’s independence, and raised the issue with the Securities Commission.
NZX says in a statement it consulted the dairy industry widely on price referencing, and has concluded that Fonterra’ online auction is the most transparent and credible benchmark.
The market will open on October 8th.
