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The NZX or New Zealand Exchange
is located in Wellington, New Zealand. It is made up
of 3 principal markets: the NZAX (New Zealand
Alternative Market), the NZSX (New Zealand Stock
Market), and the NZDX (New Zealand Debt Market).
The New Zealand Alternative Market or NZAX is the
latest equities market which supports
strong-growing, start-up companies, and businesses
with non-traditional systems, as opposed to the New
Zealand Stock Market or NZSX or the prime board is
the New Zealand Exchange's premier nonpartisanship
market.
The market of New Zealand for debt securities
trading is the New Zealand Debt Market or NZDX.
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It ranges from government and corporate to securities of
fixed income. Meanwhile, the NZFOZ handles options and
futures contracts. The New Zealand Exchange is responsible
for 3 auxiliary companies: Agri-Fax, Link Market Services,
Smartshares.
The sole securities exchange of New Zealand is the NZX. It
is furthermore responsible for shaping and appraising the
nation's principal markets. The NZX integrated a trading
system which was computerized on June 24, 1991 while in 1999
they upgraded to the FASTER system.
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It was in the 1870s during the
Gold Rush that the NZX was formed. During this time
the gold mines in Thames, Auckland, Reefton,
Dunedin, functioned as the nation's centers of
finance. Even though these interactions were a bit
basic, in 1872 the ASA or Auckland Sharebrokers'
Association was organized. They started mandatory
licensing in 1908 for share brokers and began
forming stock exchanges in 1915.
During the following few decades, with the
development of the economy of New Zealand, the stock
market increased in popularity and size. However in
1957, the Labor government started a Black Budget,
which forced several investors to the Stock Market
of Australia. Compounding the scare was a dividend
tax also and it was only with the reversal of the
tax in 1960 did the market completely recover. |
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All the stock exchanges in the regions united to form the
NZX in 1974. Just over ten years later, was the crash of the
stock market on October 20, 1987, Tuesday. As an answer to
the crash, several changes occurred in the exchange such as
the forming of a Market Surveillance Panel and a Board of
Directors.
The members of the NZX voted in favor of the proposal for
demutualization on October 16, 2002, which led to its
becoming a company of limited liability. Then NZX became
known officially as the New Zealand Exchange Limited in May
2003.
The New Zealand Exchange governs listed markets and company
participants with the intention of ensuring that the
marketplace remains efficient and transparent. The New
Zealand Exchange gives Listing Rules ruling the behavior of
member companies, an accreditation program and Participant
Rules and for participants of the market, and real-time
surveillance and monitoring of market trading.
The New Zealand Exchange is endorsed in its job as
front-line governor by the Securities Commission. This is
the legal regulator of the financial markets of New Zealand
it has no legislative authority to regulate the New Zealand
Exchange.
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