New Zealand will introduce equity index futures, according to NZX Ltd, the operator of the country’s stock exchange.
The futures are due to launch on Monday 16 June.
The contract to be launched will be known as the NZX 20 Index Futures contract. The Index has been calculated from 23 April 2012 off a base of 3,000. That number has now increased to approximately 4,000.
The NZX 20 is correlated with the NZX 50 benchmark index, providing traders with a hedging tool similar to those available in other markets. In due course, NZX plans to introduce individual equity options.
The product will trade on NZX and be cleared by NZX’s clearing house, New Zealand Clearing Limited.
The market is being supported by First NZ Capital Securities Limited and OM Financial both NZX derivatives accredited trading and advising participants.
BNP Paribas Securities Services is accredited as a general clearing participant, a legal title transfer depository participant, and a depository participant for the market.