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NZX head of derivatives Nick Morris said yesterday trades on the market were up 57% on 2016, reinforcing the aggressive growth and significant success the market had shown since it launched in late 2010.
The growth was underpinned by a 60% increase in the number of active traders accessing the market last year.
Participants were from more than 14 countries, including Uruguay, Norway, Denmark and Malaysia, cementing the market's global reach.
''It's significant to see record trading volumes on NZX dairy derivatives market, together with a substantial expansion in the market's global reach.
''This reflects NZX's ability to execute on its recently-released strategy to accelerate growth in this market and supports New Zealand's position as a global leader in the dairy sector.''
History showed a large percentage of newly-established derivatives contracts failed in their first five years. Those still growing in volume and liquidity after that time were well on their way to becoming benchmark products, he said.
In response to customer demand, the exchanged expanded its product suite in 2017, launching skim milk powder (SMP) options in December.
Early trading had been encouraging and complimented by a 78% increase in SMP futures in 2017 on 2016, Mr Morris said.
The NZX also announced last month it would extend the trading session of the market in July to 20 hours from 14 hours, subject to regulatory approval.
Growth in the NZ Milk Price Futures and Options continued to exceed the exchange's expectations last year, he said.
Since being launched in May 2016, the contracts had traded 66.9million kilograms of milk solids, an equivalent of 3.6% of New Zealand's annual physical milk supply.
By comparison, NZX's whole milk powder futures contract, which launched in October 2010, traded 0.4% of New Zealand's milk supply in its first year.