NZX Reports 2015 Yearly Market Activity Report, Debt Activity Soars

NZX’s Debt Market boasted a market capitalization that was up by approximately $5.8 billion, an increase of 44% YTD during

The New Zealand Exchange (NZX) has released its yearly markets activity performance for 2015, which showed growth in several key business segments, according to a NZX statement.

In particular, New Zealand’s capital markets have continued to undergo generally strong growth across secondary capital raising and its overall trading activity in 2015. This was further reinforced by multiple key developments and partnerships.

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Specifically, the NZX saw diminished activity in terms of initial public offerings (IPOs) in 2015, especially when weighed against 2014. Indeed, on the back end of multiple capital raising events that have generated upwards of $11.7 billion for existing listed issuers in 2015, IPO activity did still result in total new equity capital listed of $1.4 billion this year.

Furthermore, the S&P/NZX 50 Gross Index reported a robust year, which is currently up 9% YTD to 6070.9, having already delivered strong returns to investors. Moreover, the exchange’s total equity market capitalization to Gross Domestic Product was approximately 44.3%, compared to 42.1% at the end of 2014.

Another area of steadfast growth has been NZX’s Debt Market, boasting a market capitalization that was up by approximately $5.8 billion, an increase of 44% YTD during 2015. This strength was also reflected in the NZX’s Dairy Derivatives Market, which continued its rapid growth ascent in 2015 – the number of contracts traded swelled 114.6% YoY to 210,761 contracts, while open interest was up 174.7% YoY to 61,421 contracts as of mid December 2015.

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According to NZX Chief Executive Officer (CEO) Tim Bennett in a recent statement on the performance: “New Zealand’s capital markets have had a strong run in the past three years thanks to a stable, growing economy and a programme of significant market development. But we need to remain focussed and work together across the industry to ensure listing continues to offer meaningful benefits for companies and attractive investment opportunities for KiwiSaver and investors.”

“We were pleased with the reinvigoration of the listed debt market in 2015, and the launch of 16 new Smartshares ETFs was also a significant addition to the range of products listed on NZX’s markets,” he added.

Key developments in 2015

Most recently, INTL FCStone Financial Inc., has been accredited as a Derivatives Trading and Advising Participant for the exchange’s Derivatives Market. The partnership was important as it saw INTL FCStone Financial Inc. become a General Clearing Participant for the NZX Dairy Derivatives Market.

Moreover, back in August, the NZX acquired a 100% stake in Apteryx, a comprehensive provider of online functionality solutions that enables New Zealand investment advisors to manage, trade and administer their clients’ portfolios.

Earlier this month, the NZX reported its shareholder metrics for the month ending November 2015. The figures represented a number of integral features of NZX’s operations in each of its core businesses showing a generally sustained growth for the month.

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