New Zealand's Exchange (), known commonly as the NZX, is the national

stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for t ...

for

New Zealand New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island coun ...

and a publicly owned company. NZX is the parent company of Smartshares, and Wealth Technologies. On 30 August 2020, the NZX had a total of 184 listed securities with a combined market value of 184.87 billion. The main trading board is typically open from 10am to 4:45pm.

History

NZX began life as a number of regional stock exchanges during the

gold rush A gold rush or gold fever is a discovery of gold—sometimes accompanied by other precious metals and rare-earth minerals—that brings an onrush of miners seeking their fortune. Major gold rushes took place in the 19th century in Australia, New ...

of the 1860s. The first brokers’ association was started in

Dunedin Dunedin ( ; mi, Ōtepoti) is the second-largest city in the South Island of New Zealand (after Christchurch), and the principal city of the Otago region. Its name comes from , the Scottish Gaelic name for Edinburgh, the capital of Scotland. Th ...

in 1867, then in

Otago Otago (, ; mi, Ōtākou ) is a region of New Zealand located in the southern half of the South Island administered by the Otago Regional Council. It has an area of approximately , making it the country's second largest local government reg ...

in 1868,

Auckland Auckland (pronounced ) ( mi, Tāmaki Makaurau) is a large metropolitan city in the North Island of New Zealand. The most populous urban area in the country and the fifth largest city in Oceania, Auckland has an urban population of about I ...

in 1872,

Wellington Wellington ( mi, Te Whanganui-a-Tara or ) is the capital city of New Zealand. It is located at the south-western tip of the North Island, between Cook Strait and the Remutaka Range. Wellington is the second-largest city in New Zealand by ...

in 1882. The Dunedin Brokers’ Association became a stock exchange in 1893, then

Christchurch Christchurch ( ; mi, Ōtautahi) is the largest city in the South Island of New Zealand and the seat of the Canterbury Region. Christchurch lies on the South Island's east coast, just north of Banks Peninsula on Pegasus Bay. The Avon Rive ...

gained an exchange in 1900. Auckland, Christchurch, Dunedin,

Thames The River Thames ( ), known alternatively in parts as the River Isis, is a river that flows through southern England including London. At , it is the longest river entirely in England and the second-longest in the United Kingdom, after the R ...

and Wellington formed the Stock Association of New Zealand in 1915, joined by

Taranaki Taranaki is a region in the west of New Zealand's North Island. It is named after its main geographical feature, the stratovolcano of Mount Taranaki, also known as Mount Egmont. The main centre is the city of New Plymouth. The New Plymouth D ...

in 1916,

Invercargill Invercargill ( , mi, Waihōpai is the southernmost and westernmost city in New Zealand, and one of the southernmost cities in the world. It is the commercial centre of the Southland region. The city lies in the heart of the wide expanse ...

in 1920 and Gisborne in 1922. The Stock Association of New Zealand set up a sub-committee to investigate setting up a national stock exchange. In 1983 the regional exchanges were amalgamated to form a national stock exchange, the New Zealand Stock Exchange (NZSE). On 24 June 1991, NZSE implemented a computerised trading system, replacing the

open outcry Open outcry is a method of communication between professionals on a stock exchange or futures exchange, typically on a trading floor. It involves shouting and the use of hand signals to transfer information primarily about buy and sell orde ...

trading floors. This computerised system was replaced with the FASTER trading and

settlement Settlement may refer to: * Human settlement, a community where people live *Settlement (structural), the distortion or disruption of parts of a building *Closing (real estate), the final step in executing a real estate transaction *Settlement (fin ...

system in the late 1990s. NZX Clearing was launched in 2010 to take over clearing and settlement operations. On 16 October 2002 the member firms of the New Zealand Stock Exchange voted in favour of

demutualisation Demutualization is the process by which a customer-owned mutual organization (''mutual'') or co-operative changes legal form to a joint stock company. It is sometimes called stocking or privatization. As part of the demutualization process, membe ...

, and on 31 December 2002, NZSE became a

limited liability company A limited liability company (LLC for short) is the US-specific form of a private limited company. It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability ...

. On 30 May 2003, the New Zealand Stock Exchange Limited formally changed its name to the New Zealand Exchange Limited, trading as NZX, and on 3 June 2003 listed its own securities on its main equity market.

Mark Weldon Mark Rhys Weldon (born 19 September 1967) is a New Zealand businessman and swimmer. Education Born in Auckland, Weldon has Bachelor of Commerce, Bachelor of Arts, and Master of Commerce (First Class Hons) degrees from the University of Auckla ...

was chief executive officer from 2002 to May 2012. Tim Bennett was CEO from May 2012 to 31 December 2016. NZX's Head of Markets, Mark Peterson, became interim CEO in January 2017, and permanent CEO from April 2017. The NZX Centre building was originally constructed in 1907 for the C&A Odlin Timber Company, and is one of few surviving

Edwardian The Edwardian era or Edwardian period of British history spanned the reign of King Edward VII, 1901 to 1910 and is sometimes extended to the start of the First World War. The death of Queen Victoria in January 1901 marked the end of the Victori ...

industrial buildings in Wellington. The New Zealand Exchange was subject to online

distributed denial-of-service In computing, a denial-of-service attack (DoS attack) is a cyber-attack in which the perpetrator seeks to make a machine or network resource unavailable to its intended users by temporarily or indefinitely disrupting services of a host conn ...

attacks that disrupted trading for five days commencing on 25 August 2020. A group of "DDOS extortionists" demanded an unspecified ransom be paid in

Bitcoin Bitcoin (abbreviation: BTC; sign: ₿) is a decentralized digital currency that can be transferred on the peer-to-peer bitcoin network. Bitcoin transactions are verified by network nodes through cryptography and recorded in a public distr ...

or they would continue the attacks. The New Zealand Exchange ruled out paying the ransom and sought assistance from internet service provider Spark New Zealand and the country's signals intelligence agency

Government Communications Security Bureau The Government Communications Security Bureau (GCSB) ( mi, Te Tira Tiaki) is the public-service department of New Zealand charged with promoting New Zealand's national security by collecting and analysing information of an intelligence nature. ...

Principal activities

The NZX involves itself in a number of activities. It operates and regulates securities and derivative markets and provides trading, post-trading and data services for securities and derivatives, as well as the providing a central securities depository. The NZX is the only registered securities exchange in New Zealand and is also an authorized futures exchange. Its wholly owned subsidiary, the New Zealand Clearing and Depository Corporation, is the operator of a designated settlement system under part 5 of the Reserve Bank of New Zealand Act 1989. NZX provides passive funds management products through the Smartshares family of exchange-traded funds (ETFs) and is a provider of superannuation, KiwiSaver and investment products through SuperLife, which it acquired in 2015. The NZX is also the market operator for New Zealand's wholesale electricity market and the Fonterra Shareholders’ Market, under contract from the Electricity Authority and

Fonterra Fonterra Co-operative Group Limited is a New Zealand multinational publicly traded dairy co-operative owned by around 9,000 New Zealand farmers. The company is responsible for approximately 30% of the world's dairy exports and with revenue exc ...

respectively.

References

External links

* {{authority control Financial services companies established in 2002 Companies based in Wellington Financial services companies of New Zealand Stock exchanges in Oceania Buildings and structures in Wellington City Futures exchanges

History

Principal activities

See also

References

External links