New Zealand Exchange
Encyclopedia
NZX Limited 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. As of 30 June 2009, the New Zealand Exchange had 233 listed issuers with a combined market capitalization of $49.024 billion.
of the 1870s. In 1974 these regional exchanges were amalgamated to form one national stock exchange, the New Zealand Stock Exchange (NZSE).
On 24 June 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 16 October 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 30 May 2003, New Zealand Stock Exchange Limited formally changed its name to New Zealand Exchange Limited, trading as NZX, and on 3 June 2003 listed its own securities on its main equity market.
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 fund
s as well as a KiwiSaver
scheme called Smartkiwi, Link Market Services (of which NZX owns 50%) offers share registry and related services and Agri-Fax offers commercial data services relating to New Zealand agricultural products.
Opening Auction: 9.45am - 10.00am, Normal Trading: 10am - 4.45pm, Closing Auction: 4.45pm - 5.00pm
NZDX;
Opening Auction: 8.45am - 9.00am, Normal Trading: 9am - 4.45pm, Closing Auction: 4.45pm - 5.00pm
A more detailed list of trading hours can be found at http://www.nzx.com/markets/key_dates/trading_hours
NZX is supported in its role as front-line regulator by the Securities Commission
, the statutory regulator of New Zealand's financial markets although the Securities Commission has no legislative mandate to regulate NZX.
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
located in Wellington
Wellington
Wellington is the capital city and third most populous urban area of New Zealand, although it is likely to have surpassed Christchurch due to the exodus following the Canterbury Earthquake. It is at the southwestern tip of the North Island, between Cook Strait and the Rimutaka Range...
, New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
. Since July 2005 it has been located in NZX Centre, the renovated Odlins building on the Wellington waterfront. As of 30 June 2009, the New Zealand Exchange had 233 listed issuers with a combined market capitalization of $49.024 billion.
History
NZX began life as a number of regional stock exchanges during the gold rushGold rush
A gold rush is a period of feverish migration of workers to an area that has had a dramatic discovery of gold. Major gold rushes took place in the 19th century in Australia, Brazil, Canada, South Africa, and the United States, while smaller gold rushes took place elsewhere.In the 19th and early...
of the 1870s. In 1974 these regional exchanges were amalgamated to form one national stock exchange, the New Zealand Stock Exchange (NZSE).
On 24 June 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 16 October 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 30 May 2003, New Zealand Stock Exchange Limited formally changed its name to New Zealand Exchange Limited, trading as NZX, and on 3 June 2003 listed its own securities on its main equity market.
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 fund
Exchange-traded fund
An exchange-traded fund is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as the S&P 500 or MSCI EAFE...
s as well as a KiwiSaver
KiwiSaver
The KiwiSaver scheme is a New Zealand voluntary long-term savings scheme which came into operation from Monday, 2 July 2007. The main purpose of the KiwiSaver fund is for retirement savings....
scheme called Smartkiwi, Link Market Services (of which NZX owns 50%) offers share registry and related services and Agri-Fax offers commercial data services relating to New Zealand agricultural products.
Hours
NZSX and NZAX;Opening Auction: 9.45am - 10.00am, Normal Trading: 10am - 4.45pm, Closing Auction: 4.45pm - 5.00pm
NZDX;
Opening Auction: 8.45am - 9.00am, Normal Trading: 9am - 4.45pm, Closing Auction: 4.45pm - 5.00pm
A more detailed list of trading hours can be found at http://www.nzx.com/markets/key_dates/trading_hours
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
Securities Commission of New Zealand
The Securities Commission was an independent Crown Entity of the government of New Zealand and the main regulator of investments. It was replaced on the 1 May 2011 by the Financial Markets Authority ....
, the statutory regulator of New Zealand's financial markets although the Securities Commission has no legislative mandate to regulate NZX.
External links
- NZX official website
- Smartshares
- Securities Commission
- New Zealand Shareholders' Association
- Takeovers Panel
- Small Cap Research Information on NZ's smallest listed companies