S&P Dow Jones Indices (S&P DJI), provider of financial market indices, has entered into an agreement with market operator NZX Ltd. to produce and market New Zealand index business across equity and fixed income securities.
Under the agreement, S&P DJI will assume responsibility for calculating, publishing and disseminating the NZX indices, as well as their distribution and marketing in overseas markets from June 21, S&P DJI said in a joint statement with NZX. The relationship capitalizes on S&P DJI’s proven track record in global index sales and marketing and NZX’s experience in building and operating capital and risk markets and infrastructure. Additionally, it opens the door to developing a greater variety of benchmarks representing the New Zealand financial market.
“New Zealand has all the typical characteristics of a developed market economy, but meanwhile boasts immense potential for the growth of index-based investing,” says Alex Matturri, chief executive officer of S&P Dow Jones Indices. “Through our collaboration with NZX Ltd, we are proud to be at the center of a series of trailblazing initiatives to facilitate greater investor access to this vibrant market.”
Matturri said the collaboration should raise the global profile of the NZX indices.
NZX CEO Tim Bennett commented: “S&P DJI will put the New Zealand market on an equivalent footing with other leading markets around the world in terms of calculation methodology, format and distribution.”
From June 21, existing and future indices will be co-branded under the S&P and NZX brands. The benchmark, NZX50 index, will become the S&P/NZX50. NZX and S&P DJI will shortly be providing additional information regarding updates to the current index methodologies to align them with S&P DJI’s global benchmarks.
Recognizing the strategic importance of exchange relationships, S&P DJI has formed a number of unique and dynamic alliances with exchanges in various markets since 2000, including Australia, Canada, India, Japan, Peru and South Korea. S&P DJI also has longstanding commercial and strategic relationships with CBOE and CME, where many of the world’s most actively traded index and volatility derivatives are listed and based on indices calculated and published by S&P DJI. The latest agreement with NZX Limited underlines S&P DJI’s commitment to expanding its network and delivering world-class index services.
