Clearing participants in NZX’s Global Dairy Futures market will be able to process dairy futures and whole milk powder futures via SunGard’s Stream Clearvision, Stream Ubix and Stream GMI middle- and back-office listed derivatives solutions. Under the arrangement between NZX and SunGard, NZX Dairy Futures Participants who are also SunGard customers will be able to purchase an extension to access SunGard’s middle- and back-office solution suite.
Ongoing volatility in dairy market prices and the resulting industry demand drove NZX to launch its first derivatives contract for Whole Milk Powder on October 8, 2010. This was followed by contracts for Skim Milk Powder and Anhydrous Milk Fat early in 2011. These risk management tools help offer accurate hedging for firms that are trading global dairy commodities.
Kathryn Jaggard, derivatives manager at NZX, said, “This arrangement will help SunGard’s customers benefit from efficient and accurate processing of NZX dairy futures trades via SunGard’s middle- and back-office solutions. SunGard has a significant base of global clearing firms who will now be able to integrate NZX derivatives seamlessly into their back-office systems.”
Laurent Jacquemin, executive vice president of post-trade derivatives for SunGard’s capital markets business, said, “Dairy futures such as whole milk powder are designed to help manage risk and reduce volatility. Now SunGard customers that trade these contracts on NZX will be able to clear them through the Stream solution suite, helping to give them greater scalability, automation and efficiency in the middle and back office.”
