There will initially be one futures contract; the NZFOX NZSX 15 index futures (the ‘ZIF’), and 5 NZFOX equity options contracts available for trading. Trading in the ZIF will commence at 9.45am New Zealand Time (NZT) on 31 August 2004. While the five options contracts will commence trading at 9:45am on 28 September. The options will be the NZFOX Carter Holt Harvey Ltd Share Option, the NZFOX Contact Energy Ltd Share Option, the NZFOX Fletcher Building Ltd Share Option, the NZFOX Telecom Corporation of NZ Ltd Share Option, and the NZFOX The Warehouse Group Ltd Share Option.
“Futures and options are an important part of mature securities markets around the world and have proved very popular amongst retail and institutional investors globally because they allow them to manage their exposure to risk more easily,” said Carl Daucher, NZX Strategy. “And as with other markets where futures and options are actively traded, we would also expect an increase in the liquidity of the underlying stocks.”
In finalising the two launch dates, NZX consulted with key market participants in both Australia and New Zealand on product design, trading rules, and market infrastructure. Given the unique nature and uses for futures and options, and the differing states of readiness of the necessary market participants, NZX determined that it was necessary to launch the ZIF and five options products separately.
“We want to ensure that the introduction of the new NZFOX products help create real opportunities for both institutional and retail investors and therefore need to give respective participants time to adequately prepare from both a regulatory and technology perspective before we list these products.”
As previously announced, NZX has already assumed responsibility for the frontline regulation of the activity of futures dealers in New Zealand and has begun the accreditation process for NZX Participants.
“A key objective for NZX is to ensure that New Zealand investors have easy access to high quality advice on futures and options in order to make informed decisions,” said Daucher. “We see the accreditation of Futures & Options Advisors as critical to the success of this market in New Zealand.” To date over 300 individual advisors in throughout the country have attended NZX training courses on futures and options.
The first contract month for all contracts will be December 2004. Details and final specifications on all NZFOX products are available on the NZX website at www.nzx.com/products. Further information on the NZX Futures & Options Rules can also be found on the NZX website at www.nzx.com/regulation.
