INTL FCStone Gains Accreditation with NZX, Bolstering Derivatives Trading

The move for both parties is important as INTL FCStone broadens the access of market participants looking to trade on

The New Zealand Exchange (NZX) has revealed that financial services provider for global markets, INTL FCStone Financial Inc., has been accredited as a Derivatives Trading and Advising Participant for the exchange’s Derivatives Market.

In particular, the partnership will see INTL FCStone Financial Inc. also become a General Clearing Participant for the NZX Dairy Derivatives Market. The new directive will see INTL FCStone become just the second US-based participant to achieve full membership status since the NZX was granted authorization as a Foreign Board of Trade by the US Commodity Futures Trading Commission (CFTC) back in 2014.

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The move for both parties is important as INTL FCStone broadens the access of market participants looking to trade on the NZX. Such a decision also makes sense given INTL FCStone’s support behind the NZX via its Australian entity, INTL FCStone Pty. Ltd.

Consequently, the new US-based membership will help create and foster a greater presence in the well-established North American commodity trading market as well as bolstering the liquidity of NZX’s dairy derivatives market.

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The announcement is the second such induction of a foreign exchange into the US market in as many days, after Eurex extended the offering of its Trade Entry Services (TES) for all customers based in the US yesterday, vastly expanding the network of its trading participants to a previously untapped market.

According to INTL FCStone’s Vice President Foods Group, Robert Chesler, in a recent statement on the accreditation, “NZX’s dairy derivatives products have proven themselves as increasingly useful risk management products in the global dairy sector. INTL FCStone’s presence in the commodity space throughout the US puts us in a strong position to further develop this market by offering access to our customers within the US and further abroad that are interested in trading on NZX.”

“Our dairy derivatives market has demonstrated remarkable growth over the past 18 months highlighting strong interest from end users looking for risk management tools in the global dairy industry. INTL FCStone’s accreditation allows easier access to the market for customers based in the US in particular, as well as its customers throughout the world, supporting our growth strategy for this market,” added NZX CEO Tim Bennett in an accompanying statement.

Last month, the New Zealand Exchange (NZX) reported its financial metrics for Q3 2015, which were highlighted by standout performances across a number of key areas of its business. During Q3 2015, NZX’s Q3 revenue yielded a revenue growth of 12.9% YoY to $18.6 million from just $16.5 million in Q3 2014.

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