Wednesday, November 14, 2018
 Global Dairy Trade Strengthens Independence  

New governance principles to monitor GDT Events, the twice-monthly auction held by Global Dairy Trade, have been voted in by the GDT Events Oversight Board, at the Board meeting held today at SIAL Paris, the international food event.


Bill Shields Chair of the GDT Event Oversight Board said “Establishing the governance principles is an important milestone on the journey to implement best practice governance of GDT Events. The governance principles incorporate many aspects of the IOSCO Principles for Financial Benchmarks (International Organisation of Securities Commissions, July 2012) but have also been modified to reflect key features of GDT Events as a global auction platform.”


The new governance principles will enhance the Board’s monitoring to:

  • Ensure conflicts of interest are identified and disclosed
  • Provide transparency on the methods used in the price discovery process
  • Ensure appropriate control and reporting processes are in place
  • Maintain anti-trust compliance and market surveillance practices appropriate to GDT Events as a global auction platform
  • Provide regular audit and review against the governance principles.

Mr Shields also commented that the regular reviews of Global Dairy Trade’s adherence to the governance principles forms an important part of the GDT Events Oversight Board’s ongoing monitoring.

“The new governance principles strengthen Global Dairy Trade’s independence, bringing the business into line with best practice for providers of market-based reference prices. The Board’s composition, which includes representatives of leading global dairy industry participants and financial markets, means it is well placed to support the platform’s independence and future development,” he said.

Eric Hansen Director Global Dairy Trade said Global Dairy Trade values the external assurance provided by the Board as its role strengthens the business and the auction platform.

“It is pleasing to see the new governance principles leading to increased transparency. While many of the monitoring and reporting arrangements are already in place, some areas will require further development.

“One of the first outcomes from this work is the paper “Summary of price discovery process” which gives stakeholders a deeper understanding of how the winning prices are discovered during the GDT Events auctions,” he said. 


For further information please contact:

Eric Hansen -                                                            

Belinda Leslie -



Posted on Tuesday, October 18, 2016 (Archive on Tuesday, October 25, 2016)
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