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10 February 2000
Mr Eion Edgar
Chairman
NZSE
c/o Forsyth Barr Ltd
Po Box 1205
Dunedin
Dear Sir,
re NZSE service
I am writing to express my frustration at the position taken by the NZ
Stock Exchange over the provision of live market depth information by brokers
to clients via the internet. Exchange management appears to believe that
market depth is of no interest to retail investors.
I am a retail client of an Auckland internet broker, have been for 18
months. I am not a high net worth individual, nevertheless I am trading for a
living, working from a corner of my lounge, my contract notes now fill two
Eastman binders.
The notion that market depth information is of no interest to me is quaint
to say the least. I believe the real reason for NZSE's reticence are :
professional conservatism..."how could Joe Blow possibly know enough to be
able to make use of this ", and the possibilty of employment issues with the
advent of a wiser market.
The fact is, the wiser market is here, I for example can access any
information I want at any time from ASX, make a decision, and act on it. As in
fact I have been doing for six months now. I am progressively moving my funds
across the Tasman. I am not alone.
Asking my broker for a preopen market depth snapshot via email or telephone
is one thing, but actually getting it cheerfully and in timely manner is
another thing, something to do with all his other trading clients clamouring
as well I suppose.
Why is the exchange making such a big deal about allowing broker members to
disseminate their own information as they wish ?
I implore you, as Chairman of the Board, to revisit this simple, little
issue that means so much to all us little traders.
See IRG research reports
