NZX allies with global exchanges to increase connectivity

New Zealand's exchangeNew Zealand’s exchange (NZX) announced an update to its refreshed strategy and delivery plans after a comprehensive review of its business in 2017. The exchange wants to progress strategic alliances with global exchanges in order to increase its connectivity and global scale.


Having made a fundamental reset of its organization, NXZ is renewing its focus on the core markets division and the customer by implementing an initiative which will formally connect NZX with its global peers via a series of strategic alliances.


James Miller, Chairman of NZX, said: “This is a major step for New Zealand’s exchange. As part of the development of our strategy we are committed to expanding the reach and connection of the New Zealand market, and to providing our current and prospective customers with greater options and benefits. We believe that breaking away from the regional stock exchange model and creating a network of global exchange alliances is important in achieving this.”


At first, these alliances will create an increasingly compelling service offering its customers, particularly those seeking to access new markets and capital pools. Additionally, it will broaden the local market’s product offering for New Zealand investors.


James Miller, Chairman of NZX
James Miller, Chairman of NZX

Besides of the mutual recognition of each market listed regulatory regime, these alliances will promote market development initiatives across a range of areas including derivatives products, dual and secondary listings, exchange-traded funds and investor participation. Finally, allied global exchanges may expect progress towards connecting trading and clearing systems to offer a seamless experience for customers.


“NZX has the ability to play a meaningful role in facilitating easy access with global exchanges, which will deliver value for our customers and increase New Zealand’s presence and relevance in global markets,” James Miller added.


To promote a closer trading relationship with Asia, NZX signed a Memorandum of Understanding with the Hong Kong Exchanges and Clearing Limited in January, as well as with Singapore Exchange earlier this week.


Almost a year ago, NZX joined a United Nations initiative to promote sustainable and transparent markets, the United Nations Sustainable Stock Exchange (SSE) initiative. The SSE discusses environmental, social and corporate governance enhancements, as well as sustainable investment.


NZX is being headed by Chief Executive Officer Mark Peterson for almost a year now. Peterson was appointed to continue strengthening NZX’s relationships with its key stakeholders, while strategically growing the business to ensure it is best placed to compete domestically and internationally.