Introducing GDT Pulse
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.
A pilot version of GDT Pulse has been developed, offering sufficient features to meet customer needs, with further development to be informed by customer feedback.
Overview of the GDT Pulse pilot
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 10 – 20 minutes, providing a convenient option for bidders.
The pilot will allow GDT to validate whether:
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.
Key differences between GDT Events Trading Events and GDT Pulse auctions
Initially, the GDT Pulse pilot will offer auctions on alternate weeks between GDT Trading Events for a period of six to twelve months.
Below is a summary table of key differences between a GDT Events Trading Event, and a GDT Pulse Auction during the pilot period:
Start date
The first GDT Pulse auction (PA001) was held at 1200 UTC on 9 August 2022.
Auction dates during the pilot period
Published results/prices
The following key metrics will be displayed on the GDT website via the GDT Pulse tab or as a new page under the existing Results tab, immediately following each GDT Pulse auction:
Participating sellers
Fonterra is the only seller participating in the pilot, offering Whole Milk Powder Regular, Contract Period 2.
If the pilot is deemed successful, enhancements will be made to GDT Pulse to enable the service to be scaled, and other sellers will be able to offer products at this time.
Governance and trading rules for GDT Pulse
The GDT Events Oversight Board has approved proposed rule changes to the GDT Trading Event Rules to incorporate GDT Pulse. More detail is available in the marked-up GDT Trading Event Rules.
Changes within the GDT Trading Event Rules to accommodate GDT Pulse took effect from 3 August 2022.
Conclusion of GDT Pulse pilot
After the pilot period, GDT will assess the merit of GDT Pulse and the future potential for more frequent price discovery from Global Dairy Trade.
If the pilot is deemed successful, it is envisaged that GDT will invest in platform upgrades to enable scalability of the service offering and the potential for daily auctions. Other sellers will be invited to offer products at this time.
Important information for bidders
Eligibility
GDT Pulse auctions will be accessible to all registered GDT Events bidders, but just like GDT Events, only bidders that have eligibility to purchase Fonterra - Contract Period 2, will be able to participate in a GDT Pulse auction.
If you are an existing GDT Events bidder and wish to request eligibility to purchase Fonterra - Contract Period 2, please email gdthelp@fonterra.com
Pre-auction supply information
GDT Events bidders can access GDT Pulse pre-auction bidder data such as CPBL, BCI and product restrictions by looking at the most recent GDT Trading Event in the GDT Events Bidder Portal.
GDT Pulse pre-auction supply information will also be posted as a bidder announcement on the homepage of the GDT Events Bidder Portal four days before each GDT Pulse auction.
As occurs with GDT Events, bidders will need to contact their seller sales teams to organise Contract Period Bid Limits, freight rates etc.
Refer to the Bidder's Guide to GDT Pulse training guide for more information.
Fonterra Whole Milk Powder - Regular Product Bulletin
Accessing the GDT Pulse Auction Website
Existing GDT Events bidders will be able to log in via MyGDT (the home for all GDT services) using their GDT login credentials. Only bidders that have eligibility to purchase Fonterra - Contract Period 2, will be able to view the product on offer and participate in a GDT Pulse auction.
Refer to the Bidder's Guide to GDT Pulse training guide for more information.
Post-auction information
As occurs with GDT Events, participating GDT Pulse bidders can view their results and download them through the GDT Pulse Auction Website for up to 24 hours after an auction. For the duration of the pilot period, bidders will not be able to access GDT Pulse post-auction information in the MyGDT Bidder Portal.
The after-sales process for GDT Pulse is the same as GDT Events; sellers will contact the winning bidders and issue contracts for the volume won.
GDT Pulse training materials
GDT Pulse training materials are available on the GDT Pulse Training Resources page, accessible via MyGDT.
Have a question? Refer to our Frequently Asked Questions (FAQ’s) or contact us here.
