Citigroup has entered into an agreement with the Sydney Futures Exchange (SFE) to make markets in NZX's FoX15 futures contract when it launches on Tuesday 31 August.
"We've been dealing in futures and options in New Zealand for 17 years and are very pleased to be the first NZX Futures & Options Firm accredited under the new regulatory regime," said Lance Jones, OMFinancial CFO. "It's important for the health and reputation of this market that it is, and is seen to be, as robust and secure as those around the world and we are very supportive of the work NZX has done to bring it into line with international standards."
"The other key element that has been missing in the New Zealand market until now is consistent transparent pricing and having Citigroup agree to make markets here will go a long way to getting accurate prices on the screen for investors to trade in and drive liquidity," said Lance Jones.
Citigroup have entered into an agreement with SFE to provide two-way pricing on the new FoX15 futures contract which launches next Tuesday, 31 August. They are the first market maker in futures in New Zealand and one of a number of new participants that NZX has been trying to encourage into this market.
Citigroup Global Market's Director, David Fear, said their agreement to make markets in the FoX15 futures contract will aid in price discovery and create the requisite spread for investors to trade the FoX15 in the first instance.
Market Makers play a critical role in setting pricing and making price and spread information readily available for investors which is critical to driving liquidity and creating a healthy, vibrant futures market.
As a full NZX Futures and Options Firm, OMFinancial will also enable NZX Futures and Options IBs (Introducing Brokers) to trade NZFOX products via the SFE.
There will initially be one futures contract; the NZFOX NZSX 15 Index Futures (the 'FoX15'), and 5 NZFOX share options contracts available for trading. Trading in the FoX15 will commence at 9.45am New Zealand Time (NZT) on 31 August 2004. 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 S hare Option, the NZFOX Telecom Corporation of NZ Ltd Share Option, and the NZFOX The Warehouse Group Ltd Share Option.
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.
