The Milk Exchange is committed to ensuring that its systems, procedures and practices reflect a high standard of governance consistent with those applied by the Australian Securities and Investment Committee (ASIC) to exchanges and financial markets in Australia.
The Australian Competition and Consumer Commission has been briefed on the Milk Exchange.
The Milk Exchange considers that its governance framework will provide clear guidance on how authority is exercised within the Exchange and will promote a culture of compliance, ethical behaviour, integrity and respect to protect all stakeholder interests.
While not governed by ASIC, the Milk Exchange seeks to comply with ASIC principles for governance of exchanges in Australia. The governance principles have been developed to be consistent with ASIC’s REGULATORY GUIDE 172: Financial markets: Domestic and overseas operators.
Governance framework’s key principles:
- Milk Exchange is an open trading platform for buying and selling physical dairy products in Australia.
- The Milk Exchange is an open access platform on which any party may register at no cost and no obligation to trade.
- Information on offers to buy and sell will be made publicly available on the Milk Exchange.
- Information on the completed trades will be made publicly available on the Milk Exchange.
- The Milk Exchange will provide ease of qualification for parties seeking to trade.
- Buyers and sellers on the Milk Exchange will financially settle the trade directly between them.
- Milk Exchange will at no time own the underlying physical product traded or the funds for payment of the physical product traded.
- A skill-based independent Governance Committee will report regularly to the Milk Exchange Board on compliance with Milk Exchange’s governance framework.
- The Milk Exchange Governance Committee will release a public report on a regular basis on Milk Exchange’s compliance with the governance framework.
Integrity of the Milk Exchange and the trades undertaken using the Exchange is paramount and will be maintained through:
- Ease of access for all interested parties through the minimum and simple user registration requirements;
- Transparency in the Exchange’s operations and the application of compliance measures;
- The application by the Exchange of mandatory consistent standard terms and conditions for all users;
- The application by the Exchange of standard buy/ sell contracts consistent with the Dairy Industry Code of Conduct; and
- • The use of a secure Microsoft cloud-based platform as the basis for the Exchange.
Milk Exchange will not trade milk or dairy products in its own right or on behalf of another party.
Milk Exchange is independent of Milk2Market and structurally separate from it.
Milk2Market is not permitted to trade milk or dairy products on the Milk Exchange in its own right.
There is no obligation on users of Milk Exchange to use Milk2Market services.