Sydney Futures Exchange to introduce New Zealand equity derivatives

The Sydney Futures Exchange (SFE) has signed an agreement with the New Zealand Exchange (NZX) to develop New Zealand equity derivatives to be listed on the SFE by March 2004.

The exchanges will start working on equity index futures and futures options contracts, as well as individual equity options. The agreement also gives the exchanges the opportunity to work on derivatives on other securities in the future.

“We believe the deal with the SFE will provide NZX, and the local investment community, with the most cost-effective access to derivatives products,” said Mark Weldon, chief executive of NZX, in a statement.

Volumes on the SFE reached record highs this month, with 651,178 futures and options traded on September 11 and 112,343 contracts traded overnight on September 12.