The European Energy Exchange (EEX) will adjust the calculation method for the final settlement price on the futures market for dairy products, thereby responding to the wishes of market participants.
Effective from the expiry of the October 2020 contract onwards, EEX will use the arithmetic average of the published values of the relevant index in the maturity month as the final settlement price for futures on butter, skimmed milk powder and whey powder. The exchange currently uses the last available index price as the final settlement price of the respective future.
Sascha Siegel, Head of Agricultural Commodities, says: "We are in constant contact with our customers to develop our risk management tools for dairy products. Discussions with market participants have shown that this adjustment of the final settlement price better reflects existing pricing mechanisms in the underlying physical market. This will help to further enhance the relevance and usability of the EEX futures contracts on butter, skimmed milk powder and whey powder for all participants in the dairy supply chain.“
The European Energy Exchange (EEX) is the leading energy exchange in Europe which develops, operates and connects secure, liquid and transparent markets for energy and related products. As part of EEX Group, a group of companies serving international commodity markets, EEX offers contracts on Power and Emission Allowances as well as Freight and Agricultural Products. EEX is part of Deutsche Börse Group.
Contact:
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