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NZX 
Financial services / Stock exchange and financial services
At a Glance | Core Facts | Company Due Diligence | Industry Due Diligence | Competitors | Stock Swings | News | Income | Balance | Cash Flow | Growth | Enterprise | Ratios | Metrics | Dividends | Risks | SWOT | Porter's Five Forces | PEST | Score Positive | Clusters | Reports | WebCompany at a Glance
Overview
NZX is an integrated exchange and financial technology company based in New Zealand. It operates New Zealand’s only registered securities exchange and has been a key player in the country’s capital markets for over 150 years. The company provides a range of services including equity and debt listings, trading, market data, and post-trade services. It also offers a suite of technology solutions for the financial industry, including data analytics and trading platforms.
History
NZX was formed in 2002 through the merger of the New Zealand Stock Exchange (NZSE) and the New Zealand Futures & Options Exchange (NZFOE). The roots of NZX date back to 1870 when the Dunedin Stock Exchange was established. In the early 1900s, the Auckland and Wellington Stock Exchanges were also established, and the three exchanges came together to form the New Zealand Stock Exchange in 1983.
In the late 1990s, the New Zealand Futures & Options Exchange was formed to provide a marketplace for trading in financial derivatives. In 2002, the New Zealand Stock Exchange and the New Zealand Futures & Options Exchange merged to create NZX.
In 2013, NZX acquired the New Zealand Rural Land Company (NZRLC), which operates the country’s primary rural land market. This expanded NZX’s offerings to include the trading of farmland assets.
Products and Services
NZX’s primary business is operating the New Zealand Exchange, which offers a variety of securities and derivatives products, including equities, debt securities, exchange-traded funds, and equity and interest rate derivatives.
The company also provides a range of post-trade services, including clearing, settlement, and depository services. This allows for efficient and secure transaction processing for market participants.
Additionally, NZX offers a suite of technology solutions for the financial industry. This includes Smartshares, which is an exchange-traded funds (ETF) provider, and Market Indices, which offers market benchmarks and indicators for New Zealand’s financial markets. NZX also offers a range of data and analytics services through its Newsroom and Infofind services.
Social Responsibility
NZX is committed to operating sustainably and responsibly. It has a comprehensive corporate social responsibility policy that covers areas such as environmental sustainability, community engagement, and ethical business practices.
The company is also a member of the United Nations Global Compact, signifying its commitment to promoting human rights, labor rights, environmental protection, and anti-corruption measures in its business operations.
In addition, NZX has a strong focus on diversity and inclusion, both in its internal workplace and in the wider financial community. It has established a Diversity Council to promote these values and works closely with organizations such as the New Zealand Stock Exchange Diversity Network and Women in ETFs.
Conclusion
Overall, NZX is a key player in New Zealand’s financial markets, providing a range of products and services for investors and market participants. With a long history and a commitment to responsible and sustainable business practices, NZX looks set to continue playing a significant role in the country’s capital markets for years to come.
History
NZX was formed in 2002 through the merger of the New Zealand Stock Exchange (NZSE) and the New Zealand Futures & Options Exchange (NZFOE). The roots of NZX date back to 1870 when the Dunedin Stock Exchange was established. In the early 1900s, the Auckland and Wellington Stock Exchanges were also established, and the three exchanges came together to form the New Zealand Stock Exchange in 1983.
In the late 1990s, the New Zealand Futures & Options Exchange was formed to provide a marketplace for trading in financial derivatives. In 2002, the New Zealand Stock Exchange and the New Zealand Futures & Options Exchange merged to create NZX.
In 2013, NZX acquired the New Zealand Rural Land Company (NZRLC), which operates the country’s primary rural land market. This expanded NZX’s offerings to include the trading of farmland assets.
Products and Services
NZX’s primary business is operating the New Zealand Exchange, which offers a variety of securities and derivatives products, including equities, debt securities, exchange-traded funds, and equity and interest rate derivatives.
The company also provides a range of post-trade services, including clearing, settlement, and depository services. This allows for efficient and secure transaction processing for market participants.
Additionally, NZX offers a suite of technology solutions for the financial industry. This includes Smartshares, which is an exchange-traded funds (ETF) provider, and Market Indices, which offers market benchmarks and indicators for New Zealand’s financial markets. NZX also offers a range of data and analytics services through its Newsroom and Infofind services.
Social Responsibility
NZX is committed to operating sustainably and responsibly. It has a comprehensive corporate social responsibility policy that covers areas such as environmental sustainability, community engagement, and ethical business practices.
The company is also a member of the United Nations Global Compact, signifying its commitment to promoting human rights, labor rights, environmental protection, and anti-corruption measures in its business operations.
In addition, NZX has a strong focus on diversity and inclusion, both in its internal workplace and in the wider financial community. It has established a Diversity Council to promote these values and works closely with organizations such as the New Zealand Stock Exchange Diversity Network and Women in ETFs.
Conclusion
Overall, NZX is a key player in New Zealand’s financial markets, providing a range of products and services for investors and market participants. With a long history and a commitment to responsible and sustainable business practices, NZX looks set to continue playing a significant role in the country’s capital markets for years to come.
What is special about the company?
There are a few factors that make NZX stand out as a unique company:
1) It is the only registered securities exchange in New Zealand, making it the primary platform for trading equities, debt securities, derivatives, and other financial products in the country.
2) NZX is a publicly listed company itself, and its shares are traded on its own exchange. This means that it is subject to the same regulations and scrutiny as any other listed company, giving it a unique perspective on the challenges and opportunities facing listed companies in New Zealand.
3) NZX plays a crucial role in the New Zealand economy by providing a mechanism for companies to raise capital and investors to generate returns. This makes it an important contributor to the country’s economic growth and development.
4) The company is also responsible for overseeing and regulating the conduct of its market participants, ensuring fair and transparent trading practices.
5) NZX is committed to promoting sustainability and responsible investing, which aligns with New Zealand’s values and global trends. The company prioritizes ethical and socially responsible practices in its own operations and encourages listed companies and investors to do the same.
6) NZX has a strong focus on technology and innovation, regularly introducing new trading platforms and systems to improve efficiency and expand its product offerings. This makes it a leader in the digital transformation of the New Zealand financial sector.
1) It is the only registered securities exchange in New Zealand, making it the primary platform for trading equities, debt securities, derivatives, and other financial products in the country.
2) NZX is a publicly listed company itself, and its shares are traded on its own exchange. This means that it is subject to the same regulations and scrutiny as any other listed company, giving it a unique perspective on the challenges and opportunities facing listed companies in New Zealand.
3) NZX plays a crucial role in the New Zealand economy by providing a mechanism for companies to raise capital and investors to generate returns. This makes it an important contributor to the country’s economic growth and development.
4) The company is also responsible for overseeing and regulating the conduct of its market participants, ensuring fair and transparent trading practices.
5) NZX is committed to promoting sustainability and responsible investing, which aligns with New Zealand’s values and global trends. The company prioritizes ethical and socially responsible practices in its own operations and encourages listed companies and investors to do the same.
6) NZX has a strong focus on technology and innovation, regularly introducing new trading platforms and systems to improve efficiency and expand its product offerings. This makes it a leader in the digital transformation of the New Zealand financial sector.
What the company's business model?
The NZX company operates as a financial market infrastructure and service provider. It offers a diverse range of products and services, including share and debt market listings, trading, clearing, settlement, and depository services. The company’s business model is based on providing a platform for companies and investors to raise capital, access investment opportunities, and manage risk in a transparent and regulated environment. It generates revenue through fees collected from listing fees, trading fees, and market data services, as well as offering technology and data services to other financial institutions and businesses. Its ultimate goal is to facilitate the efficient and effective functioning of the New Zealand capital markets, contributing to the country’s economic growth and development.
Interesting facts about the company
1. Founded in 1870, the NZX (New Zealand Exchange) is the main stock exchange for New Zealand, headquartered in Wellington.
2. It is a registered exchange under the Securities Markets Act 1988 and is responsible for operating and regulating the securities and derivatives markets in New Zealand.
3. The NZX is ranked as a developed market by S&P Global and is a member of the World Federation of Exchanges.
4. The NZX has over 176 listed companies on its board and has a market capitalization of around NZ$150 billion as of 2021.
5. Its main indexes are the NZX 50 Index, which tracks the performance of the top 50 companies listed on the exchange, and the NZX 20 Index, which tracks the performance of the top 20 companies.
6. The NZX operates through a fully electronic trading platform, with no physical trading floor. The majority of trading is done by institutional investors, with only a small percentage by individual investors.
7. In addition to traditional stock trading, the NZX also offers trading in derivatives such as options, futures, and short-term interest rate derivatives.
8. The NZX has a unique listing category called the NZX Alternative Market (NZAX), which caters to smaller, early-stage companies seeking to raise capital. It operates under a light-touch regulatory regime, making it easier and more cost-effective for companies to list.
9. In 2021, the NZX announced plans to launch a new sustainable exchange designed for companies committed to sustainability, social responsibility, and ethical practices. This initiative aims to attract investors who are increasingly prioritizing sustainability in their investment decisions.
10. The NZX has faced criticism in recent years for its lack of diversity, with a majority of listed companies being led by male CEOs and a lack of representation of Māori, Pasifika, and women on company boards. In response, the exchange has set diversity targets and is working to increase representation in its listed companies.
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2. It is a registered exchange under the Securities Markets Act 1988 and is responsible for operating and regulating the securities and derivatives markets in New Zealand.
3. The NZX is ranked as a developed market by S&P Global and is a member of the World Federation of Exchanges.
4. The NZX has over 176 listed companies on its board and has a market capitalization of around NZ$150 billion as of 2021.
5. Its main indexes are the NZX 50 Index, which tracks the performance of the top 50 companies listed on the exchange, and the NZX 20 Index, which tracks the performance of the top 20 companies.
6. The NZX operates through a fully electronic trading platform, with no physical trading floor. The majority of trading is done by institutional investors, with only a small percentage by individual investors.
7. In addition to traditional stock trading, the NZX also offers trading in derivatives such as options, futures, and short-term interest rate derivatives.
8. The NZX has a unique listing category called the NZX Alternative Market (NZAX), which caters to smaller, early-stage companies seeking to raise capital. It operates under a light-touch regulatory regime, making it easier and more cost-effective for companies to list.
9. In 2021, the NZX announced plans to launch a new sustainable exchange designed for companies committed to sustainability, social responsibility, and ethical practices. This initiative aims to attract investors who are increasingly prioritizing sustainability in their investment decisions.
10. The NZX has faced criticism in recent years for its lack of diversity, with a majority of listed companies being led by male CEOs and a lack of representation of Māori, Pasifika, and women on company boards. In response, the exchange has set diversity targets and is working to increase representation in its listed companies.
See Company Due Diligence:
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