Governance · Milk Exchange

MX Governance Principles

The Milk Exchange is committed to ensuring that its systems, procedures and practices reflect a high standard of governance. The Milk Exchange is governed by Corporations Act.

The Milk Exchange does not currently operate as a financial market but as a matter of good practice has regard to the requirements imposed on operators of financial markets to ensure that it operates in a fair, orderly and transparent manner.

The Milk Exchange offers :

an independent trading platform to sell and purchase physical milk and dairy products;
clear separation of the Milk Exchange from each transaction, with sellers and buyers settling sale and purchase contracts directly;
an independent corporation governed by the Corporations Act and Governance Principles having regard to Regulatory Guide 172 issued by the Australian Securities and Investments Commission which provides guidance for operators of financial markets; and
experienced and skills based board and governance committee.

The Milk Exchange considers that its governance framework provides clear guidance on how authority is exercised within the Milk Exchange and promotes a culture of compliance, ethical behaviour, integrity and respect to protect all stakeholder interests.

Governance Framework

The Milk Exchange is committed to ensuring that its systems, procedures and practices reflect a high standard of governance.

The Milk Exchange provides a platform for the sale and purchase of physical milk and dairy products and is governed by the Corporations Act. The Milk Exchange does not currently operate as a financial market, but as a matter of good practice has regard to the requirements imposed on operators of financial markets to ensure that it operates in a fair, orderly and transparent manner.

Six Key Elements:

The Milk Exchange facilitates the sale and purchase of physical dairy products. The Milk Exchange does not take ownership of any milk or dairy product and does not handle the funds required to complete a sale and purchase of any milk or dairy product.
The Milk Exchange Board has extensive experience in establishing commodities markets for trading both physical commodities and financial products.
The Milk Exchange Board is supported by a Governance Committee comprising independent directors experienced in the development and application of governance frameworks and establishment and operation of commodity and financial markets.
All transactions concluded on the Milk Exchange are secured by standard terms and conditions and use a standard form contract (consistent with the Mandatory Dairy Code of Conduct when trading farm milk).
The Milk Exchange is an independent corporation governed by Corporations Act. While the Milk Exchange is not a financial market, its Governance Principles have regard Regulatory Guide 172 issued by the Australian Securities & Investments Commission which provides guidance for operators of financial markets.
The Milk Exchange operates in a fair, orderly and transparent manner. Any party can observe the activities on the Milk Exchange, there is no cost to register on the Milk Exchange and there is no obligation to use the Milk Exchange when registered. The costs of trading on the Milk Exchange are open and transparent.