Dairy companies in New Zealand will be able to trade for longer, helping them do business with the likes of Europe and Asia after the country’s stock exchange announced plans to extend trading hours.
The New Zealand Stock Exchange (NSX) wants to move the existing market close of 16:00 NZ time to a market close of 22:00, extending the session to 20 hours from 14 hours currently. Opening times will remain unchanged.
The extended market hours will facilitate easier trading between Europe and Asia, two key dairy trading regions. European traders will now have the ability to place orders and execute trades at the beginning of their trading day, and the Asian trading session will be extended into their afternoon.
NZX Head of Derivatives Nick Morris commented: “NZX has had strong demand from customers in Europe and Asia to extend opening hours into their trading day. This extension will also enable key dairy buying regions, such as the Middle East and Africa, greater access to NZX’s dairy derivatives market and support New Zealand’s position as a global leader in this industry.
"We expect to see an increase in participation and volume traded on NZX’s dairy derivatives market as a result of the new closing time.”
The plans remain subject to regulatory approval.