Published On: Mon, May 5th, 2014

NZX Equity Derivatives Launch Date Announced

Tim Bennett, CEO, NZX

Tim Bennett, CEO, NZX

Following the successful completion of Equity Derivatives testing, NZX is pleased to announce the launch of Index Futures on 16 June.

The Futures contract will trade off the NZX20 index, a capital index launched on 23 April 2012 off a base of 3000. The NZX20 is highly correlated with the NZX50 benchmark index, providing market participants with the same easy and cost effective hedging tool available in most offshore markets.

The path to launch has included extensive consultation and planning with a range of external stakeholders both in New Zealand and internationally.

With a firm launch date now set, NZX will increase its efforts in developing customer activity and growing the market. This will include derivatives education outlining the significant benefits of trading futures contracts – hedging, transitioning, equitising cash and speculation.

NZX CEO Tim Bennett commented: “We are building markets for the long term to ensure New Zealand has a vibrant capital market supporting both primary and secondary trading, providing risk management solutions for institutions and retail investors alike.”

First NZ Capital has further reinforced their NZX derivatives participation with a commitment to providing trading and execution services for the new NZX Equity Derivatives market.

Managing Director of Institutional Equities James Lee commented: “We are excited about the launch of equity derivatives and support NZX’s initiative. We look forward to providing services to clients who wish to use these products for risk management and hedging purposes. We believe a functioning derivatives market is an important component to having a fully functioning capital market.”

As previously announced, BNP Paribas Securities Services SCA (the global custodian and securities services provider under the BNP Paribas Group) has been accredited as a General Clearing Participant, a Legal Title Transfer Depository Participant, and a Depository Participant for NZX’s Equity Derivatives Market.

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