S&P/NZX20 Index Futures Relaunch Project

Overview

A liquid index future's market has been a long-held ambition for NZX, with a successful delivery creating value right across the capital markets ecosystem, including:

• Improving liquidity in the secondary market for listed issuers
• Offering greater diversity of investment choice, both within KiwiSaver and more generally
• Grow the capital markets ecosystem in New Zealand by extending the NZX product offering which provides tools to hedge NZX equity market risk and enable a wider range of trading strategies to be deployed.

NZX recognises that for a New Zealand Index Future's to be successful, previous barriers to success need to be resolved including engaging with the wider market to ensure a willingness from industry users to build liquidity together.

This page outlines details of the project relaunch including market settings, frequently asked questions, key dates and NZX communication updates. These updates will be released regularly to keep all stakeholders informed about the project’s progress.

Cornerstone Group

NZX is pleased to announce the formation of the S&P/NZX20 Index Futures Cornerstone Group. Its 12 members have signed a letter of intent to support the relaunch of a New Zealand based index future's market.

NZX and members of the Cornerstone Group recognise that for a New Zealand index future's market to be successful, it requires end users who see value in a liquid market and a willingness to develop that liquidity.

In upcoming coming external communications NZX will unveil the members of the Cornerstone Group 

Market Settings

The proposed market settings, contract specifications, data vendor codes and trading fees can be found below:

Rules and Guidance Consultations

Project Timeline

Due to work planning underway, we are unable to provide a detailed external project timeline at this point in time. NZX’s intention is to work towards a relaunch later this year. However, that will be dependent on: 

• Outcomes of rules consultation and regulatory submissions 
• Onboarding of market maker, market participants and technology vendors.  
• All NZX readiness milestones have being achieved 
• Proximity to the end of the Calendar Year. 

That may mean the relaunch could begin early in the New Year  

Market Communications

Contact