Global Dairy Trade (GDT) has been working on an exciting new development with Fonterra that aims to enhance liquidity in GDT for the benefit of both buyers and sellers by providing price discovery on a more frequent basis, called GDT Pulse. The pilot version of GDT Pulse is ready for launch, and the first auction (PA001) is scheduled for 1200 UTC on 9 August 2022.
Fonterra will confirm the planned supply for the pilot period later today via the GDT Events Market Announcement to NZX and GDT Events Bidders.
Changes within the GDT Trading Event Rules to accommodate GDT Pulse will become effective on 3 August 2022.
Initially, GDT Pulse will offer auctions on alternate weeks between GDT Trading Events for a period of six to twelve months. The auctions will offer one product specification to bid on: Fonterra Whole Milk Powder Regular, Contract Period 2. This will ensure a short total duration of 15 – 30 minutes, providing a convenient option for bidders.
The pilot will allow GDT to validate whether:
- There is a credible level of participation
- Credible prices are published
- Trading has increased in the dairy futures market
Prices discovered through the GDT Pulse auctions will be complementary to the price discovery provided by GDT Events.
GDT Events will continue to be the large volume, high liquidity events that the dairy industry watches, while GDT Pulse intends to provide interim price discovery for core commodity products between the GDT Events auctions.
For a more detailed overview of the GDT Pulse pilot and frequently asked questions (FAQs) click HERE