NZX announces it will implement changes to its trading and clearing pricing
structure in the second half of 2018 as it responds to feedback from market
participants and to encourage more on-market liquidity. This supports the
exchange''s commitment to secondary market development, as outlined in its
recently released strategy.
NZX will migrate to a trading and clearing pricing model in line with global
practice to provide participants will greater price certainty when
negotiating brokerage and services with their clients.
Further details, including the model and implementation timeline, will be
outlined in the exchange''s full year financial results in February 2018. The
changes will be supported by amendments to the NZX Participant Rules to
improve price discovery and on-market liquidity. NZX will commence a formal
consultation process on the potential changes to these rules early next year.
Price and rule changes will be implemented in parallel.
In addition to pricing and rule changes, NZX will engage with the market to
develop a broader suite of trading tools for its customers to also assist in
driving greater on-market transparency and liquidity. NZX will leverage its
2019 trading system upgrade to meet these requirements.
NZX Head of Markets Development and Clearing Benjamin Phillips commented:
"NZX is committed to implementing a pricing and rule structure that better
supports the needs of our customers, and is consistent with global best
practice in facilitating greater on-market liquidity, and driving greater
transparency for investors. These changes will further lift the integrity of
the New Zealand market."
The exchange has already made good progress towards improving on-market
liquidity. The trial of a tailored trade pricing structure designed to
attract new local and international electronic trading flow has improved
price discovery, while adding further depth and liquidity to the market.
The trial commenced in July 2017 and since then average daily on-market value
has increased 13%, compared to the prior period.
NZX will continue to engage with the broader market to determine the best
outcome for the pricing structure as part of the implementation plan in Q1
2018.
For further information please contact:
Hannah Lynch
Head of Communications
T: 09 308 3710
M: 021 252 8990
E: hannah.lynch@nzx.com
End CA:00312176 For:NZX Type:GENERAL Time:2017-12-20 08:30:07