Forum Archive Index - March 2000

[Sarah Corkill <Sarah.Corkill@directbroking.co.nz>]

Tony & Graeme,

 

I am a big supporter of being able to view market depth on the internet but I also understand the view of the NZSE as a member of the Exchange.

 

First things first, anyone can obtain a sharebrokers licence by filling in an application form, getting two references that will say you are a good, honest reliable person and paying some cash to the district court.  They will inturn send it to the local police who will check your criminal record and you will be issued with a sharebrokers licence.

To become a member of the NZSE you must pass the exams the exchange sets, hold a sharebrokers licence and have experience working for a broker to be able to become a member.  You have to be a member or work for a member firm to be able to trade. There are rather large costs involved in setting everything up.

 

Copies of the Members Rules and Regulations, NZSE Listing Rules or a copy of the Code of Practice can be viewed at the office of any member of the NZSE.

 

The Exchange runs the market on behalf of it's members.  As far as I am aware there is no advantage to brokers keeping market depth from anyone that wants to view it.  What the Exchange is trying to say is that before any decision on the ability of people to view market depth is made all members have to agree.  Not all Members have website's that show this sort of information so they would also have to agree for that information to be shown.

 

There will a be a cost involved in disseminating this information via the web and the Exchange (and it's members) will have to bear that cost.  User's will want the information to be accurate so there will be a huge amount of testing to make sure the information is accurate.  You have started the ball rolling but you will have to have patience because this isn't going to happen overnight.  It is also not a conspiracy to keep the small investor out or deprive them of money making opportunities. 

 

Regards,

 

Sarah Corkill
Direct Broking

 

-----Original Message-----
From: G Christie [mailto:bayvu@ihug.co.nz]
Sent: Wednesday, 15 March 2000 19:20
To: sharechat@sharechat.co.nz
Subject: Re: [sharechat] Market depth NZSE reply

Thanks for that Tony. "member firms who trade on the Exchange." O.K. what's involved in becoming a registered broker? Anyone know? No doubt some sort of bond, surety etc. Need a copy of that Rules, Regulations and Code of Practice of the Exchange. Sharechat Broking Inc. Sorry Ben. The depth and other pre-trade info (and extended trading time) must be a huge advantage to these brokers, otherwise they'd let you and I have it. Cheers

-----Original Message-----
From: Tony Haddon <haddon@ihug.co.nz>
To: sharechat@sharechat.co.nz <sharechat@sharechat.co.nz>
Date: Wednesday, 15 March 2000 17:18
Subject: [sharechat] Market depth NZSE reply

Back in February I wrote to W P Foster, MD NZSE , and Eion Edgar, chairman, re lack of market depth. Bill Foster replied within a day or two, Eion Edgar hasn't got round to it yet. I've been putting off posting the reply 'cos I don't have a scanner.......anyway here it is, any typo's are mine.

 

"Dear Sir, it is a current policy of the Exchange not to provide an electronic distribution of any pre-trade information including depth other than to member firms who trade on the Exchange.

 

We are reviewing this policy in conjunction with the introduction of direct Internet trading on the Exchange as some depth information will be needed to assist persons placing their own orders directly.

 

In the meantime, you should be aware that the information does not belong to any one member firm, since they all contribute to it collectively by submitting their own orders and orders from their clients. We have no restriction of their distribution of their own information as they wish, but it is not unreasonable to approach the distribution of information gained collectively through the function of the Exchange in a thoughtful manner, rather than simply to provide it just because some clients would like to receive it directly and do not feel they are being well serviced by their NZSE member firm. Under the Rules, Regulations and Code of Practice of the Exchange, NZSE member firms play an essential and important role as intermediaries and counterparties to the market and we are concerned to ensure that direct access by clients does not impact on the integrity of the market and its efficient operation.

 

I can assure you that there is no professional conservatism or patronisation of client competence underlying the development of the policy.

 

 

Y.f

 

W P Foster   M.D. "

 

My reaction...yeah, right....and naive or not, I do not have a particularly high opinion of people like  Eion Edgar who do not answer their mail. 

 

Is it time to consider forming an "action group" of some sort to promote our interest to the NZSE ?

 

 

Regards

 

Tony Haddon