NZX - NZ Exchange

[_Michael]

Encouraging news on the Dairy Futures market today. Record volume of trading after very slow start.

Will be interesting to see how that pans out.

With regards to their mire recent results does anyone know how they earn revenues from clearing house outside the usual trading revenues?

Thanks And Regards,

M

[macduffy]

NZX pulls the plug on its Australian exchange jv.

http://news.theage.com.au/breaking-n...114-19q5v.html

[Silverlight]

With regards to their mire recent results does anyone know how they earn revenues from clearing house outside the usual trading revenues?

M

A clearing house makes money from interest it receives, on the margin the users (brokers) deposit with the clearing house, to bear the risk of settling every trade (counter party failure). Addtionally the margin the brokers provide will not always be cash, but securities as well. The clearing house can then lend there securities out to third parties, for a fee, and the third parties can use the lent stock to sell short securities.

On the ASX merger taking over NZX, why bother? why target bread crumbs, when you already own a bakery?

NZX completes 2,000 trades a day, compared to ASX 400,000 trades a day, the revenue and effort to secure the extra NZX revenue is easier done by just having the big companies dual list... oh yeah that already happens, FBU, TEL, AIA, AIR, IFT, are already listed on asx, are more traded there, and more liquid, so ASX already get a piece of the pie, and over time their piece has grown.

NZX is a data merchant business, that as a side also runs an exchange. For accurate analysis, compare NZX to Iress, Bloomberg, or even APN, rather than ASX.

[Balance]

NZX is a data merchant business, that as a side also runs an exchange. For accurate analysis, compare NZX to Iress, Bloomberg, or even APN, rather than ASX.

NZX has been milking monopoly profits by fee gouging industry participants - so much so that the industry is shrinking and the day of reckoning is coming fast.

Mark Weldon will be out of there though with his options etc cashed up before the inevitable happens - his successor will be left with a stuffed goose which used to lay eggs.

What a disgrace.