New Zealanders could soon have access to stock options trading options to buy and sell shares.
The New Zealand Stock Exchange (NZSE) has issued a trading symbol for options trading in the Zone, which is currently being negotiated with an investor group that is seeking to establish a new stock market in the country.
“We’ve just recently been in discussions with the group and they’ve offered to take our options to open a stock exchange in the new zone,” said the NZSE’s managing director Mark Lohr.
“They’re in discussions on that, and I don’t know what the final decision is going to be, but we’re working on it and hopefully that will be announced in the near future.”
The NZSE had previously allowed people to trade shares in the NZ Stock Exchange but had been reluctant to let them trade stock options.
The move comes amid increasing tensions between the Government and the private sector over how to manage the economy and the government has been grappling with how to deal with a rapidly ageing population.
The NZSEC has had to seek more funding for its operations, which have been severely depleted by the global financial crisis.
The NZSEM also recently approved the first trading restrictions for a new market, restricting the purchase of stocks from foreign companies and individuals.
The new zone could bring opportunities for businesses, with a market worth about $3 billion, but some say there’s a lack of transparency about the conditions of the deal.
“The NZ government needs to have a clearer plan for the zone.
They need to give us a clearer answer to what it is and what is going on,” New Zealand Securities and Investments Commission chairman Michael Gough said.
“We are hoping for a more transparent process that allows us to have confidence in the outcome of this transaction.”