NZX to compete with ASX in Australia

New Zealand Exchange Ltd, NZX, is to compete with the Australian Stock Exchange, ASX, in part of the Australian market.

NZX is a 50 per cent shareholder in a new venture with Citigroup, CommSec, Goldman Sachs JBWere, Macquarie Bank and Merrill Lynch each holding 10 per cent.

The new company will launch an Australian Electronic Communications Network, ECN, in the first half of 2007 which will offer traders a platform for reporting offmarket trades.

ECNs are high-speed, low-cost platforms that separate listing from trading functions and are already available in many markets.

"The new Australian ECN is being created to boost innovation and competition in the Australian capital market," NZX chief executive Mark Weldon said.

The shareholders believed the time was right to introduce competition in a subset of exchange services currently controlled by the ASX.

"We are working closely with all relevant statutory bodies to ensure a seamless entrance into the market and look forward to releasing further details in due course," Mr Weldon said.

The board of the new Australian ECN will appoint a chief executive in due course.

There was no immediate comment on the cost of the new venture.

- NZPA