New Zealand Exchange

From Wikipedia, the free encyclopedia

New Zealand Exchange Limited (NZX) is a stock exchange located in Wellington, New Zealand. Since July 2005 it has been located in NZX Centre, the renovated 'Odlins Building' on the Wellington waterfront.

1 History
2 Products
3 Regulation
4 Contact information
5 External links

[edit] History

NZX began life as a number of regional stock exchanges during the Gold Rush of the 1870s. During the 1970s these regional exchanges were amalgamated to form one national stock exchange, the New Zealand Stock Exchange (NZSE).

On June 24 1991, NZSE implemented a computerised trading system, and abolished the open outcry market. This computerised system was replaced with the FASTER trading system in September 1999.

On October 16 2002 the Member Firms of the New Zealand Stock Exchange voted in favour of demutualisation, and on 31 December 2002, NZSE became a limited liability company. On May 30 2003, New Zealand Stock Exchange Limited formally changed its name to New Zealand Exchange Limited, trading as NZX, and on June 3 2003 listed its own securities on its main equity market.

[edit] Products

NZX operates three main markets:

New Zealand Stock Market (NZSX), the premier equities market;

New Zealand Alternative Market (NZAX), for smaller and growing companies; and

New Zealand Debt Market (NZDX), for corporate and government bonds and fixed-income securities.

In addition the NZX is currently developing NZFOX, a trading facility for futures and options contracts based on NZ listed securities.

NZX has three subsidiary companies. Smartshares offers a range of Exchange-traded funds, Link Market Services offers share registry and related services and Agri-Fax offers commercial data services relating to New Zealand agricultural products.

[edit] Regulation

NZX regulates listed companies and market participants with the aim of ensuring a transparent and efficient marketplace. NZX provides Listing Rules governing the behaviour of listed companies, Participant Rules and an accreditation programme for market participants, and real-time monitoring and surveillance of trading on its markets.

NZX is supported in its role as front-line regulator by the Securities Commission, the statutory regulator of New Zealand's financial markets althought the Securities Commission has no legislative mandate to regulate NZX.