Published On: Thu, Feb 26th, 2015

S&P Dow Jones Indices and NZX Limited Enter Into Strategic Index Agreement

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Tim Bennett, CEO, NZX -

Tim Bennett, CEO, NZX –

S&P Dow Jones Indices (“S&P DJI”), one of the world’s leading providers of financial market indices, and NZX Limited today announced a strategic agreement to jointly develop, produce and commercialize co-branded investable indices featured on NZX platforms and related data products. The agreement will see the two parties collaborate on the development and commercialization of the New Zealand index business across equity and fixed income securities.

Per the agreement, from June 21st, 2015, S&P DJI will assume responsibility for calculating, publishing and disseminating the NZX indices, as well as their distribution and marketing in overseas markets. This relationship capitalizes on S&P DJI’s proven track record in global index sales and marketing and NZX’s experience in building and operating capital and risk markets and infrastructure. Additionally, it opens the door to developing a greater variety of benchmarks representing the New Zealand financial market.

“New Zealand has all the typical characteristics of a developed market economy but meanwhile boasts immense potential for the growth of index-based investing,” commented Alex Matturri, Chief Executive Officer of S&P Dow Jones Indices.

“Through our collaboration with NZX Limited, we are proud to be at the center of a series of trailblazing initiatives to facilitate greater investor access to this vibrant market. We are committed to raising the global profile of the NZX indices with our well-recognized marketing and international commercialization capabilities that utilize the strength of our brand and over 115 years of experience in providing transparent and independent financial market indices.”

NZX CEO Tim Bennett commented: “S&P DJI is the world’s leading provider and distributor of market indices and will put the New Zealand market on an equivalent footing with other leading markets around the world in terms of calculation methodology, format and distribution. We are confident that this will further increase the appeal and profile of the New Zealand market among both global and local investors. We look forward to a constructive and fruitful relationship with S&P DJI.”

Once the agreement commences on June 21st, 2015, existing and future indices will be co-branded under the S&P and NZX brands. The benchmark, NZX50 index, will become the S&P/NZX50. NZX and S&P DJI will shortly be providing additional information regarding updates to the current index methodologies to align them with S&P DJI’s global benchmarks.

NZX would also like to acknowledge the contribution that ANZ has made to the suite of debt indices over the past six years. ANZ Head of Global Markets New Zealand Andrew Allan commented: “ANZ is proud of its involvement with the ANZ Debt Market Indices over the past six years and with the significant development in both the indices and the New Zealand market over that time. We have valued our working relationship with NZX and are committed to working with NZX, S&P DJI and our customers to ensure this development continues over the coming years.”

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