Trading Technologies (TT) has partnered with the New Zealand Stock Exchange (NZX) to provide connectivity to the exchange, enabling market participants to access and trade its markets through the TT platform.
Under the agreement, NZX will utilise Trading Technologies’ global distribution network and low-latency connectivity to broaden access for both domestic and international participants, allowing them to incorporate NZX instruments into multi-market trading workflows via a single platform.
Participants accessing NZX through TT will be able to use a range of execution tools, including algorithms, Autospreader, ADL, charting and analytics, as well as APIs, alongside connectivity to other global venues.
Alun Green, EVP and managing director, futures and options at Trading Technologies, said: “We’re delighted that NZX chose TT as its partner on this high-priority project aimed at nurturing a liquid index futures market and contributing to the growth of New Zealand’s capital markets ecosystem.
“We expect that the emergence of this market will enable local and global market participants to hedge their equity market risk and use our sophisticated trade execution tools as part of their multi-market strategies.”
The partnership is intended to support the launch of NZX’s S&P/NZX 20 index futures contract.
Nick Morris, general manager, cash and derivatives markets at NZX, added: “The launch of S&P/NZX 20 Index Futures is an important milestone for New Zealand’s capital markets, and our collaboration with Trading Technologies is central to delivering this outcome.
“TT’s global connectivity and execution technology will enable both local and offshore participants to access and trade New Zealand equity derivatives efficiently.”
The connectivity comes ahead of the planned launch of the S&P/NZX 20 index futures contract on 28 April, with BNP Paribas expected to act as market maker, subject to regulatory approval, to support liquidity.
The contracts are designed to provide investors with a tool to hedge exposure to New Zealand equities, as NZX looks to build a local derivatives platform and support improved liquidity management and investment choice.