Forum Archive Index - February 2001

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

To All Sharechatters,

 

In light of the current "Calling all Readers" debate, it seems timely to raise again the issue of Market Depth (or lack of it) on the NZSE.

 

Charlie Brown aka Gecko has a point, in that we need "well reasoned letters rather than 3-liner errant e-mails".

 

Here is my well-reasoned letter on the issue of Market Depth.

And rather than sending it to info@nzse.co.nz where it will just get deleted by some office underling, I suggest you e-mail it to the man himself, Bill Foster aka Fossill, Managing Director of the NZSE.

Here is his private e-mail address: "Bill Foster" <bill@nzse.co.nz>
Copy just the part between the angle brackets.

 

My sharebroker is Access.  If you have another broker who also endorses the free publication of Market Depth information via the Internet, then I urge you to replace my references to Access, with the name of your own broker.

 

Lets get the flames flying...

And warm up old Bill's mailbox just to let him know we haven't gone away...

And that we won't just go quietly, we want some action on this issue!

We're sick of being treated like mushrooms i.e. kept in the dark and fed on BS

 

Whaddya say, Sharechatters?

Will you do it???

I've already sent my copy, but we need concerted action on this one if we are to make any difference.

 

Thanks for your attention.

 

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

Dear Bill

Early last year the following statement was received 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.

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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