Source: Radio New Zealand
NZX and the capital markets hadn’t had a futures index since the early 1990s. RNZ / Angus Dreaver
The capital markets operator NZX has launched a futures index, which gives equity investors a more efficient way to manage risk.
The S&P/NZX 20 Index Futures supports efficient pricing, enables effective hedging, and helps market participants mitigate risks.
NZX cash and derivatives markets general manager Nick Morris said the introduction of the index was a significant milestone for NZX and the capital markets, which hadn’t had a futures index since the early 1990s.
“New Zealand has been an outlier among comparable developed economies in not having a liquid domestic equity derivatives market,” Morris said.
“With today’s first trades in the S&P/NZX 20 Index Futures, investors now have an efficient way to manage risk and gain exposure to New Zealand equities, closing that longstanding gap.”
The S&P/NZX 20 index tracked the 20 largest and most liquid companies in New Zealand.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
