Exchange lashes out at detractors

By Richard Braddell

WELLINGTON - The stock exchange took on its critics at the Tower launch yesterday, with chairman Eion Edgar firmly rejecting suggestions that it was in decline.

"The suggestion that the New Zealand Stock Exchange is not vigorous or entrepreneurial or is at risk of being increasingly obsolescent is hardly credible," Mr Edgar said.

Rather than criticise, examples such as the stock exchange's just commissioned Faster electronic trading system used yesterday to trade Tower shares, and innovations such as the low fee Tenz passive investment fund, should be taken as evidence of the exchange's innovative ways.

Saying that turnover had jumped 22 per cent and trades 24 per cent in the past year, Mr Edgar said he expected volumes to grow further, helped by the Tower listing, which will be about the 15th largest company, and that of Westpac on October 12. "The stock exchange is committed to provision of a clear, open and efficient market which is several times cheaper than our Australian counterpart," he said.

It cost as little as 60c to make a trade in New Zealand while the Australian minimum was $2, rising to $15, he said.

"We have a staff of 24, we do a very efficient job, they have about 700," he said of the Australian Stock Exchange.

"The issue of whether the stock exchange remains a stand-alone market is not even relevant."

While cross border trading platforms would be welcomed if they reduced costs and improved access, the complexities of governance and common disclosures meant the concept of a national listing would never disappear.