Online brokers forced to wait

By SIMON HENDERY

Technical issues have delayed the New Zealand Stock Exchange's long-awaited release of market depth information to online brokers.

Market depth data shows the number of bidders and sellers associated with a particular stock, the number of shares they want to buy or sell, and their price limits.

Online brokers have been lobbying the exchange for years to be able to make this information available on their websites.

After arguing that the information belonged to its members and should be kept between them, the exchange backed down in August and said the details would to be published over the internet from the start of this month.

But the exchange's managing director, Bill Foster, said the installation of the system was running about a month behind schedule, although it was hoped a temporary service would be running next week.

ASB Securities managing director Tim Preston said his firm had been prepared for a November 1 launch and wanted the service as soon as possible, because of strong client demand.

"I guess one out of three questions we get asked from clients on the internet is, 'When can we see market depth'.

"It's something we see as being very critical to helping web clients make their [investment] decisions."

Direct Broking provided depth data last Thursday, the day of the intended launch, through a link with IRESS Market Technology, which will provide the exchange's temporary system.

But Direct Broking managing director Nigel Wynn said the company had been asked to remove the data because the exchange had not yet signed a provision agreement with IRESS.

Mr Wynn said that although customer demand for market depth was high, the royalties the exchange was charging, about 4c a view, were extreme.