Forum Archive Index - February 2001

["David" <davida@wave.co.nz>]

Dear Bill,


WHEN ARE WE GOING TO BE ALLOWED TO PLAY ON A LEVEL PLAYING FEILD ???????
WHY DOES THE SMALL INVESTOR ONCE AGAIN GET PENALISED BY THE NZSE.
WHAT IN HEAVENS NAME HAVE YOU GOT TO LOSE


,
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It is this kind of outdated thinking on the part of the NZSE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

David Adams
_____________


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