New Zealand Stock Exchange (NZX)
| New Zealand Stock Exchange | |
| |
| Headquarters | New Zealand |
|---|---|
| Key People | Mark Peterson, CEO |
| Products | Securities and energy derivatives |
| Website | http://www.nzx.com/ |
The New Zealand Stock Exchange (NZX) operates equity, debt, derivative and energy markets in New Zealand. It operates a global dairy derivatives market offering futures and options contracts.
NZX provides trades, post-trade, and data services for securities and derivatives. It also provide central securities depository service through its wholly owned subsidiary, New Zealand Clearing and Depository Corporation.
NZX owns the exchange traded fund provider Smartshares and FundSource, a managed fund research business.
NZX invested in LINK Market Services Limited, a securities registry business which provides registry services to both listed and unlisted New Zealand companies, of which NZX owns 50 percent. It also invested in Appello Services, a fund management administration business, of which it owns 30 percent.[1]
NZX ranked 51st in global derivative exchange volume in 2020 with 360,887 contracts traded, a .55% increase from the previous year, according to the FIA Annual Volume Report.[2]
History[edit]
New Zealand traces its exchange roots back to 1866 when two men named Moodie and Connell first exchanged shares. It later became "The Dunedin Brokers Association" and became a stock exchange in 1893. Another exchange was formed in Christchurch in 1900. In 1915, several cities joined together - Auckland, Christchurch, Dunedin and Wellington - to create the Stock Association of New Zealand. Three other cities joined later: Taranaki in 1916, Invercargill in 1920 and Gisborne in 1922. The national exchange was formed in 1983 and by 1985, the exchange had set new rules to allow members to merge and incorporate with each other.[3][4]
Cities had their own trading facilities and in 1986, the Auckland Exchange built a new building with a modern open outcry trading floor. Wellington increased the size of its trading facility then as well and Christchurch moved to a larger location. A new computer system linked the four regional markets in 1986 on one central platform. In March 1989, the New Zealand Stock Exchange was created as a single corporate entity run by an independent board of directors. Regional exchanges were then eliminated. In 1991, computerized trading was introduced and the trading floors were closed.
In 2002 a board of directors elected by shareholders were appointed as well as a new chief executive. The following year the company demutualized and listed on its own exchange. The New Zealand Stock Exchange also formally changed its name to NZX.[5]
NZX acquired electricity market operator The Marketplace Company Limited (M-co) in April 2009.
NZX acquired Melbourne-based CLEAR Grain Exchange and CLEAR Interactive, the technology developer of the CLEAR Grain Exchange in October 2009. NZX acquired Australian Crop Forecasters in December 2009.
NZX launched a spot gas market which opened for trading on Sept. 2, 2013. It offers monthly, weekly, daily and intraday products focused on a ‘virtual welded point’ on the Maui pipeline, which is owned and operated by Maui Development Limited.[6]
On February 5 of 2014, NZX's global derivatives markets was approved to be a Foreign Board of Trade by CFTC.[7]
In June 2014, NZX launched an equity derivatives market offering index futures and providing investors with additional tools for their New Zealand equity investment and risk management needs.[8]
In 2017, new CEO Mark Peterson set about "resetting" the strategic direction of the exchange with a five year plan. A full review of business lines included revising the exchange's capital structure for its clearing house, divesting from its rural newspaper business Farmers Weekly, and grain data. The exchange also set to work on strenghening its core stock listing business after losing one of its top New Zealand companies, Xero, to the Australia Stock Exchange. It also reached out to other markets and signed a memorandum of understanding with Hong Kong Exchanges and Clearing in January 2017 to further promote Asia-Pacific markets.
In August 2020, the NZX reported that it experienced a cyber-attack known as a distributed denial of services, forcing it to close for four days. New Zealand called in its spy agency to investigate the attack and activated security crisis plans to help defend the stock exchange. [9][10]
Products[edit]
NZX operates a number of markets including:
- NZX Main Board (NZSX)
- NXT Market (NXT)
- NZX Alternative Market (NZAX)
- NZX Debt Market (NZDX)
- NZX Dairy Derivatives
- NZX Equity Derivatives (NZCX)
- Fonterra Shareholders Market (FSM)
- S&P/NZX Indices
It also provides a number of investing products and services including:
- ETFs
- Superlife, an investment and insurance service
- NZX Wealth Technologies, a wealth management technology firm
- FundSource, an investment research firm
- NZX Data Products, NZX data on equities, agriculture and energy
- NZX virtualTrading, a virtual trading platform for investors and traders
- Dairy data and insights
Key People[edit]
- Mark Peterson, Chief Executive
- James Miller, Chairman of the Board
- Graham Law, Chief Financial & Corporate Officer
- Joost Van Amelsfort, Chief Executive - NZ RegCo
- Sarah Minhinnick – General Manager Capital Markets Origination
- Jeremy Anderson – General Manager Capital Markets Development
- Felicity Gibson – General Manager Market Operations
- Robert Douglas – Chief Technology Officer
- Hamish Macdonald – Chief Strategic Delivery Officer
- Hugh Stevens – Chief Executive, Smartshares
- Lisa Turnbull – Chief Executive, NZX Wealth Technologies
- Lara Robertson - General Manager People and Sustainability
Contract Volume[edit]
| Year | Total Annual Volume | Percent Change |
| 2018 | 345,651 | 10.9% |
| 2017 | 311,675 | 1.3% |
| 2016 | 1,834,170 | 1.3% |
| 2015 | 1,811,241 | 37.1% |
| 2014 | 1,140,966 | 0.2% |
| 2013 | 1,138,576 | -- |
References[edit]
- ↑ Who We Are. NZX.
- ↑ 2020 Annual Volume Survey. FIA.
- ↑ NZX Annual Report 2018. NZX.
- ↑ Bulls, Bears and Elephants: A History of the New Zealand Stock Exchange. David Malcolm Grant.
- ↑ Overview. NZX.
- ↑ NZX Launches Natural Gas Market. MondoVisione.
- ↑ CFTC Issues Order of Registration for NZX Limited. CFTC.
- ↑ New Zealand set for equity derivatives launch. FTSE Global Markets.
- ↑ NZX Re-opens Following Four-Day Hacking Shutdown. The Trade.
- ↑ Cyber Attacks Halt New Zealand Stock Exchange For Fourth Day. Bloomberg.