NZX plans NZX50 changes ahead of SOE floats, plus new NZX20 index
Stock exchange operator NZX is planning a new market index | PLUS: State asset sell-down prompts index review.
Stock exchange operator NZX is planning a new market index - the NZX20 to be used as the underlying index for an index futures contract next year.
In a discussion document released today – the first major index methodology review since 2003 - NZX also discusses the upweight, downweight and liquidity rules for the NZX50 Index, as well as the weighting rules for the NZX10 Index.
NZX says the index review will also help deal with the government's plans to float part of four state-owned assets and how these are then traded.
"If the SOE mixed ownership model proposed by the Government is completed, under the current index weighting rules in the Methodology, approximately 15% of indexed shares would be Strategic Holdings, unavailable for trading. We believe that it is therefore timely to consider the appropriateness or otherwise of certain aspects of the Methodology," the consultation paper says.
NZX says it has been discussing changes with the market and believes there is "strong appetite for reconsidering these index rules".
Feedback is open until February 9.
NBR staff
Wed, 21 Dec 2011
Wed, 21 Dec 2011
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NZX plans NZX50 changes ahead of SOE floats, plus new NZX20 index
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