NZX
26/03/2015 13:28
GENERAL
NOT PRICE SENSITIVE
REL: 1328 HRS NZX Limited
GENERAL: NZX: NZX to launch Exchange Traded Options
NZX is pleased to announce that following approval by the Financial Markets
Authority, NZX equity options are expected to launch on 24 April 2015.
Equity options are another step in the development of New Zealand's capital
markets, and follow the introduction of the NZX20 Index futures contracts in
June 2014.
Equity options are very well traded globally and are flexible investment
tools that allow investors to manage risk, hedge their portfolios and add
income.
NZX will initially launch option contracts based on Fletcher Building Limited
Ordinary Shares (FBU), Spark New Zealand Limited Ordinary Shares (SPK) and
Trade Me Limited Ordinary Shares (TME). We plan to offer options on more
stocks in the future. One option contract will confer on the buyer the right,
but not the obligation, to either buy or sell 100 ordinary shares in the
underlying company, depending on the type of option.
The path to launch has included extensive consultation and planning with a
range of external stakeholders both in New Zealand and internationally.
NZX CEO Tim Bennett commented: "The development of an equity derivatives
market is of significant importance to ensure the long term viability and
success of New Zealand's capital markets, offering a vital risk management
tool for institutional and retail investors alike."
The equity options market will be supported by First NZ Capital Securities
Limited, as an accredited NZX Derivatives Market Trading and Advising Firm
providing trading and execution services and BNP Paribas Securities Services
SCA (a global custodian and securities services provider) as an accredited
General Clearing Participant, Legal Title Transfer Depository Participant,
and Depository Participant providing clearing services.
To learn more about equity options, please visit the NZX Derivatives section
on our website nzx.com/derivatives
For further information please contact:
Media
Kate McLaughlin
Corporate Communications
M: +64 27 533 4529
E: [email protected]
End CA:00262318 For:NZX Type:GENERAL Time:2015-03-26 13:28:50
