Forum Archive Index - December 2000

["Grant Keymer" <grant@jenlogix.co.nz>]

This is kinda scary...

 

"Larger New Zealand broking firms will have to foot the bill for a systems upgrade costing A$500,000 a year. Smaller brokers working through a bureau will find their costs rising from NZ$10 per transaction to A$50."

 

It would put a real dampener on doing smaller trades.

I have always wondered why most NZ Brokers charge A$50 per ASX transaction.

 

With trades thru Access costing just $29.50 at present, I would certainly view this as a major drawback to the proposed merger.  A further statement is made concerning transaction costs:

 

"A merger will result in higher transaction and compliance costs" is given the response "Overall costs will rise initially but longer term the benefits are expected to outweigh this with greater liquidity, broader investment interest and potentially lower unit costs. "

 

Who knows how long "Longer Term" means... 3 years, 5 years, 10 years???

 

Before reading this article I was in favour of a merger, but now I have my doubts.

It will be interesting to see what others think in this forum, where (hopefully) none of us have a vested interest in demutualising the NZSE.

 

Cheers

 

Grant Keymer
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