Pursuant to Contract Terms 15.1 and 15.3 of the Futures Contracts and to Contract 8.1 and 8.3 of the Options Contract, and as notified to the market on 13 December 2012,NZX Limited ("NZX") reminds all market participants that from the July 13 expiry month each of the WMP Futures, AMF Futures, SMP Futures and WMP Options Individual Contract Specifications and the WMP Futures, AMF Futures and SMP Futures Contract Terms and Administrative Procedures will be amended to reflect the following change:
As previously announced to the market on 17 October 2012, and via memo on 13 December 2012, NZX will change the final settlement price methodology for certain Futures Contracts. To that end, NZX will amend the Individual Contract Specifications and the Contract Terms and Administrative Procedures for the below Futures Contracts for Contract Months from July 2013 onwards:
NZX Derivatives Market Contract No. 1 Global Whole Milk Powder (WMP) Futures; ?NZX Derivatives Market Contract No. 2 Global Anhydrous Milk Fat (AMF) Futures; and ?NZX Derivatives Market Contract No. 3 Global Skim Milk Powder (SMP) Futures.
The above Individual Contract Specifications currently state that Last Trading Day shall be "the last Business Day preceding the first GDT auction of the month i.e. trading in the March WMP/AMF/SMP (as applicable) Futures Contract will expire on the last Business Day immediately preceding the first GDT auction in April."
NZX will amend the Last Trading Day section of each Contract Specification by replacing the word "first" with "last" and the word "April" with "March" so that the definition of Last Trading Day shall then be "the last Business Day preceding the last GDT auction of the month i.e. trading in the March WMP/AMF/SMP (as applicable) Futures Contract will expire on the last Business Day immediately preceding the last GDT auction in March."
In respect of the Contract Terms and Administrative Procedures for each of the above Futures Contracts, the example provided in the definition of "GDT Period" under clause 1.1 will be removed.
The amended Contract Specifications and Terms and Administrative Procedures are available at http://www.nzxfutures.com/dairy/contract_specifications
NZX has made the above amendments in accordance with the NZX Derivatives Market Rules.