The agreement, which comes into effect immediately, is the first of its kind to be entered into by the NZSE. The terms of the agreement will allow the NZSE to share information and knowledge with the HKEx, regarding market information and data that will help in maintaining the integrity of each market.
Five years ago the clear expectation was that there would be a diminished number of stock exchanges globally, with alliances and mergers expected to reduce the number of national stock exchanges. At this year's AGM of the World Federation of Exchanges, there was a clear recognition that this is no longer the case.
NZSE CEO Mark Weldon said "The Memorandum with the Hong Kong Exchange is both important and appropriate. Important because it formally establishes a strong relationship with the HKEx - one of the fastest growing exchanges in the world, and appropriate because it reflects the future of inter-exchange relationships.
"The focus of inter-exchange relations has now firmly shifted from mergers, to mutual recognition and close co-operation at the operational and regulatory levels. There is a strong and clear understanding emerging that the responsibility for regulatory activity and growth lie firmly with national exchanges.
"To ensure robust market regulation it will be important for exchanges to continue to improve international investment opportunities, and formal agreements such as the Memorandum of Understanding signed with the HKEx, are critical.
"The NZSE is proud to be associated with such a progressive Exchange, and is certain that by signing this agreement, we will be even better positioned to detect market manipulations and can more quickly obtain market data and information".
