NZX's head of regulatory and public policy Elaine Campbell said the approval of the rules will strengthen the New Zealand capital markets' regulatory framework.
"We are pleased to be charged with the responsibility of regulating participants in the futures and options market. The NZX Futures and Options Rules will implement a robust system centred around investor protection, designed to raise investor confidence in the quality of advice given on futures and options products. This should bring about positive effects for our capital markets as a whole."
"Our aim is for the new rules to further enhance the reputation of the New Zealand investing landscape among both domestic and international investors as a desirable location for investment capital."
The Securities Commission's approval follows a public feedback period which opened when the NZX Futures and Options Rules were published on 20 February 2004. NZX also consulted extensively with existing participants in the futures and options market to ensure the most effective regulatory framework was developed.
The NZX Futures and Options Rules draw on the existing NZFOE Rules and those of other international futures and options exchanges to ensure a smooth changeover to the new regime and that New Zealand meets international best practice in this area.
To deal in futures contracts in New Zealand you must be authorised under the Securities Markets Act 1988. The NZX Futures and Options Rules provide an avenue for anyone who wishes to provide advice to, and/or hold client funds for, New Zealand clients to trade futures and options contracts in any market worldwide to be authorised.
The NZX Futures and Options Rules, together with a marked-up copy showing the changes made, can be downloaded from www.nzx.com/regulation.