Since its joint launch by GDT and Fonterra almost a year ago, the pilot version of GDT Pulse has sought to expand GDT’s service offering for buyers and sellers by facilitating more frequent price discovery. This service offers Fonterra's Whole Milk Powder Regular Contract Period 2 for auction in weeks when GDT Trading Events are not held. GDT Pulse ensures a streamlined auction process with a total duration of approximately 10 to 20 minutes.
Customer feedback gathered after six months of operation indicated strong support for further reducing the bidding round duration from two minutes to one minute, while maintaining a 30-second End of Round duration. This adjustment aimed to optimise the auction experience and enhance efficiency for participants.
To date, the performance of GDT Pulse has been encouraging. Across the 26 auctions conducted, a significant volume of 25,427 MT of product has been sold, amounting to a cumulative value of US$82,825,880. The average clearance rate for the products offered on GDT Pulse stands at an impressive 97.8%. The auctions have typically consisted of an average of eight bidding rounds, with a total auction duration averaging 17 minutes. On average, each auction has attracted the participation of 30 bidders, out of which an average of 15 have emerged as winning bidders.
Overall, bidders have expressed satisfaction with the current auction format and timing, reinforcing the positive reception of GDT Pulse.
Building on the achievements of the pilot phase, GDT plans to extend the trial of GDT Pulse for an additional 12 months. The extended pilot phase will focus on feedback from bidders that requested expanded offerings and features. This expansion is expected to attract more participants and further enhance market liquidity.
The continued success of the GDT Pulse pilot could lead to significant future developments. GDT is considering investing in platform upgrades to ensure scalability and explore the possibility of offering more auctions. Furthermore, the platform aims to broaden its scope by inviting other sellers to offer their products, promoting increased diversity and expanding market opportunities for buyers.
For more detailed information please visit the dedicated GDT Pulse page.