Global Dairy Trade's vision is to be the world's pre-eminent price discovery platform for core dairy products and an active supporter of efficient dairy derivative trading.
We have been working on an exciting new development consistent with this vision 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.
A trial version of GDT Pulse with sufficient features to meet the needs of early customers will launch in 2022, and customer feedback will inform further development.
Initially, GDT Pulse will offer auctions on alternate weeks between GDT Trading Events for a trial period of six to twelve months. The auctions will initially have 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 trial will provide us with valuable bidder feedback and insight into the needs of bidders and financial market participants. After the trial period, we will assess the merit of GDT Pulse and the future potential for more frequent price discovery from Global Dairy Trade.
GDT Pulse will fall under the governance of the GDT Events Oversight Board, which has reviewed a set of draft rule changes.
We now invite your feedback on these proposed changes prior to the Oversight Board's final decision.
A paper outlining the concept of GDT Pulse, including a summary explanation of the proposed changes to the GDT Trading Event Rules is available here. More detail is available in the Marked-up GDT Trading Event Rules.
Please submit your feedback via email to firstname.lastname@example.org with the subject line: "Feedback on GDT Pulse." Submissions close on Sunday 10 April.