Forum Archive Index - October 2001

["Gary Wilson - Brisbane" <fastmail@bigpond.net.au>]

Ben,

 

A very timely review of the NZSE.  I agree the NZSE appears to be slow in tackling the issues that are emerging in the stock exchange industry.  The London Stock Exchange thinks it needs to grow to survive - so quite where will this leave the NZSE? Comparisons with other exchanges are a tad unfair.  Singapore or Oslo might be better comparisons given the similar population base involved to NZ - but even this falls away as a basis for comparison - as both SGX and OBR have globally significant Company's on their lists and incorporate derivatives markets!  Operationally exchanges are driven to be on one operating platform for economies of scale by one means or another and this very same technology will mean their are going to be three SX types;

 

Those which encompass listings of global significance ..... ie NYSE, Nasdaq, Germany(?) London(?) and Tokyo

Regional or specialist exchanges ..... ASX may qualify as a regional centre and a specialist centre re resources

Local markets (ie smaller Companies generally of national significance) .... this is the fate of NZSE.

 

If NZSE doesn't move along the ASX will in time create a "NZ Board" - and that would keep the brokers happy as they are mostly rationalising their operations to centre on Sydney or similar.

 

Are there wider issues/implications here for NZ?