Forum Archive Index - January 2001

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

Thanks for that Tony,

 

There is also quite a detailed letter which I have drafted to Bill Foster (NZSE Managing Director) which anyone is free to edit for their own purposes and then forward on as required.

 

Any comments and suggestions as to improvements etc would be most welcome.

I have posted the contents of the letter below for everyone's convenience.

 

Cheers Everybody

 

========================================================================

Dear Bill

 

Early last year I received the following correspondence from you regarding
provision of NZSE Market Depth via the Internet:
===========================================================================
There is not full agreement amongst member firms on the provision of
live (electronic access to) depth information to clients of member
firms. The NZSE has the policy under review with its shift to direct
access for member firms. We understand the issues and implications and
there are arguments for and against a change in our current policy.
Current NZSE policy is that only member firms can view market depth
(buy and sell order volumes at price steps from the market).
===========================================================================
According to a statement in the NZ Herald Business Section dated January 17,
regarding an NZSE:ASX merger, you have admitted that:
"it is unlikely a vote would be held before the middle of the year".

 

Meanwhile, all during last year, absolutely no progress has been made in
providing the direct access for member firms which you refer to above.
I take your point that there is not (and may never be) full agreement amongst
member firms on the provision of live depth information, but it does not seem
reasonable that this disagreement should give you the mandate to declare that:
ALL MEMBERS OF THE NZSE SHALL NOT PROVIDE LIVE DEPTH INFORMATION TO THEIR CLIENTS
which is the current position.

 

My sharebroker (Access Brokerage) do not wish to restrict access to the market
or access to information.  But NZSE Policy forces it upon them.
Indeed, Access already publish the same Market Depth information from the ASE
via the internet to registered clients.

 

This is what they wish to also do for their NZSE clients.  It is ludicrous that
sharebrokers are permitted to divulge Market Depth information by phone, but
not through other means.  This is "Dark Ages" thinking which puts the NZSE
well behind other bourses around the world.

 

It is this kind of outdated thinking on the part of the NZSE
which will drive me, and legions of computer-literate investors like me, to
more technologically enlightened foreign bourses.

 

Why cannot those members of the NZSE who wish to, disseminate the market depth
information to their clients in whatsoever manner they see fit?

 

Can you give me at least one good reason why this shouldn't be allowed?
What harm could it possibly do to the NZSE as a whole?

 

No doubt there would be a migration of some customers to other brokers who
provide more timely information, but this is the same in any industry.  Customers
go where they feel they are being looked after, and by restricting the power
of NZSE members to adequately inform their customers, you are fighting against
a worldwide trend towards greater openness and disclosure.

 

I hope this message expresses the frustration I feel at not being able to
make a fully informed trading decision merely because "NZSE Policy dictates
that it must be so".  My sharebroker and I wish it to be otherwise!

Regards

 

Your Name Here

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