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New Zealand Exchange Limited (NZX), Citigroup, CommSec, Goldman Sachs JBWere, Macquarie Bank and Merrill Lynch have signed a shareholders' agreement, incorporating a company to launch a new Australian ECN (Electronic Communications Network) that will deliver market participants a choice in reporting services.
With an intention of launching in the first half of 2007, the ECN will initially deliver a new reporting platform to market participants.
ECNs are high-speed, low-cost platforms that separate listing from trading functions and are already available in most leading global markets.
In recognition of the growing strength and sophistication of the Australian capital markets, the shareholders believe the time is right to introduce a degree of technological and price competition in a subset of exchange services currently controlled by the ASX.
“The new Australian ECN is being created to boost innovation and competition in the Australian capital market. We believe that market participants will welcome this new competitive element and look forward to launching the new platform in the first half of 2007,” CEO of NZX, Mr Mark Weldon said.
“We are working closely with all relevant statutory bodies to ensure a seamless entrance into the market and look forward to releasing further details in due course,” Mr Weldon said.
The Board of the new Australian ECN will appoint a CEO in due course.
NZX will have a 50% stake in the new entity with Citigroup, CommSec, Goldman Sachs JBWere, Macquarie Bank and Merrill Lynch each holding 10%.
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