Bank becomes an accredited NZX participant
8 December 2004
Westpac Institutional Bank becomes an accredited NZX participant
Westpac is the first bank to be accredited as a distribution and underwriting participant by New Zealand Exchange Limited (NZX).
The new arrangement allows Westpac Institutional Bank (WIB) not only to assist its customers to list or quote securities directly on NZX markets but also to distribute and underwrite issues.
David McLean, Head of WIB, says, “This creates an opportunity for WIB to post directly onto NZX markets, which offers a wealth of benefits to our top companies. It’s a natural progression for us, following our decision a year ago to become a sponsor of New Zealand Alternative Exchange (NZAX). We can now offer our customers a full listing, distribution and underwriting service.”
”Both NZX and WIB are delighted to enter into this new alignment. Historically, we have used third party brokers to list debt securities on NZDX even though we had Arranger and Lead Manager status. This made the process complicated and expensive. Now we can provide a one-stop, fully transparent and convenient service at a reduced cost for our customers, whilst still providing our customers with the choice of using a broker if it meets their specific needs.” he said.
NZX Market Developments Manager, Geoff Brown, says, "NZX
has created this new participation structure to offer
interested parties a modular entry level to New Zealand
markets with a view to broadening participation and
increasing market liquidity. The accreditation process is
rigorous, with stringent compliance requirements."
McLean says, “We are currently No1 Transactional and Institutional Bank (Peter Lee Associates) and Bank of the Year (Infinz) for the last two years, and we are continually looking for new ways to innovate in order to maintain our lead position.”
Westpac will now be able to bring new
issues of debt securities to the NZDX, both for customers
and for its own issues.
As an NZX participant, WIB proposes to offer customers the following opportunities:
Bring new issues to the NZDX only
Distribute and underwrite primary issues brought to NZDX
WIB is not intending to participate in the NZX equity market in the context of this arrangement.