KEY POINTS:
New Zealand's high-flying dollar has been added to the world's biggest electronic foreign exchange trading platform.
Until now the kiwi was primarily bought and sold on Reuters' trading platform, but London-based company ICAP has added the dollar to its EBS electronic trading system.
"We're starting to consider the aussie and the kiwi dollar as major currencies now," said ICAP's Nick Murray-Leslie.
The EBS platform operates 24 hours a day, seven days a week. It handles more than US$145 billion (196.6 billion) a day in spot foreign exchange transactions between banks and large hedge funds.
"It's a question of putting the kiwi on a global stage," said Murray-Leslie.
ICAP had responded to rapidly growing demand from investors over the last six to 12 months as the kiwi emerged as a favoured currency for those looking for high yields.
"They went to our customers ... ANZ, BNZ and Westpac, and said they needed to see the kiwi on this system.
"People's investment strategies are changing all the time and getting more complex and they need better technology."
Murray-Leslie said about 200 banks around the world were now set up to trade in the kiwi with EBS, leading to increased liquidity in the currency.
ANZ head of markets John Body said the kiwi's inclusion in the EBS trading platform "further recognises the maturity of the New Zealand capital markets and the increased focus of the global investor community on the New Zealand dollar".
"This platform will further enhance liquidity, benefiting both local importers and exporters and broadening the pool of global investors active in the New Zealand dollar."
But ANZ head of currency trading David Wilkinson said the inclusion was essentially a move by ICAP to try to grab a slice of the rapidly growing trade in kiwi from Reuters.
"They've seen how much kiwi business is going through these days and decided it's in their best interests to do so."
Trade in the kiwi was increasing dramatically and the currency was now among the most traded in the world, he said.
"It's not just yield, it's also volatility related. The FX markets have been pretty quiet now for a number of years and the kiwi can fly around a bit and that tends to attract participation."
Nevertheless, Wilkinson welcomed ICAP's introduction of the kiwi to its EBS platform as "another avenue" to trade the currency which had some advantages such as 24-hour operation.
The kiwi has been one of the most heavily traded of the world's smaller currencies for the past two years, with investors attracted by the country's high interest rates. It has risen 20 per cent against the US dollar in the past year.
On Friday it closed at US73.45.
Big bucks
* The kiwi dollar is now being bought and sold on the world's largest electronic foreign exchange trading system, EBS.
* The kiwi has increasingly become a favoured currency among forex traders because of its yield and its relative volatility.
* EBS handles US$145 billion worth of transactions every day.