NZSE looking at merger options

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The New Zealand Stock Exchange is looking at merging with another exchange, however it doesn't expect a decision to be made until later this year.

Friday, May 12th 2000, 12:00AM

by Philip Macalister

The New Zealand Stock Exchange is looking at merging with another exchange, however it doesn't expect a decision to be made until later this year.

While NZSE chairman Eion Edgar is not revealing who the exchange is talking to but the Business Herald reports it is Australia, Canada and Singapore.

Another report suggests one of the options may be Internet-based.

The revelation that the NZSE is looking at joining up with other exchanges comes against the background of exchange mergers around the world.

Last week the London and Frankfurt exchanges announced the creation of a merged entity, iX, which will be the biggest bourse in Europe.

Across the Tasman the Australian Stock Exchange is looking at various merger options, including (according to some reports) Hong Kong, Singapore, South Africa and exchanges in the United States.

ASX chief executive Richard Humphry put the heat on the NZSE yesterday when he used the NZSE as an example of what the ASX should not do.

He commented about the number of large companies leaving the NZSE board (most recently Lion Nathan) and the lack of liquidity and depth in the market.

He said the ASX and the NZSE should merge.

Edgar says the NZSE board could only make a recommendation to its members about a future merger. He said the NZSE was working through the regulatory issues of a merger and would need to talk to the Government about the issue.

For more on the state of the NZSE see the Features section

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