Euronext will launch its new dairy derivatives complex on April 13, less than two weeks after the abolition of the European Union's milk production quotas, it said on Tuesday. The offering includes futures for butter, skimmed milk powder and whey powder, and replaces former skimmed milk powder derivatives that failed to take off.
The exchange will offer a full waiver for its trading fees until June 30, it said in a market notice on Tuesday.
The first delivery position available for trading would be June 2015 and Euronext will offer 18 consecutive calendar months trading horizon, Olivier Raevel, commodities director at Euronext, told Reuters.
Euronext says it can tap into demand for hedging as the EU dairy sector prepares for the abolition of milk quotas on April 1, seen increasing price volatility in the world's top dairy producing region.
"Further to discussions with market operators and in accordance with demand from the European dairy industry, these new instruments will be available for trading following the end of the European milk quotas and liberalisation of milk production," it said in a market notice. Euronext had announced in November a full suite of dairy futures and options to be listed in Amsterdam. But it said on Tuesday that it had decided to start with futures only and had not yet set a launch date for the options.
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