By DITA DE BONI
Share options for Auckland Airport, Sky Television and The Warehouse will trade on the New Zealand Future & Options Exchange (NZFOE) from today.
Retail traders, fund managers and brokers have reportedly pushed for the new contracts, which are for 1000 shares on a contract cycle of March, June, September and December.
The share options can be exercised at any time before the contract's expiry.
The new additions reflect their growing importance in the NZSE-10 Capital Price Index now that contracts on Brierley Investments and Nufarm have been dropped.
Greg Boland, general manager of the NZFOE, said despite the fact Lion Nathan had moved its primary listing to Australia, there had been no call for that company's options to be delisted.
There had been demand for Baycorp and WestpacTrust to be added to the exchange, he said. The WestpacTrust share option has received exchange board approval but is still in the planning stage.
The NZFOE expected the new products to increase the 200-300 contracts the exchange was handling every day at present, although initial volumes would not be too high, Mr Boland said.
The new products will join existing share options Air New Zealand "B" shares, Carter Holt Harvey, Contact Energy, Fisher & Paykel, the four Fletcher companies, Lion Nathan and Telecom New Zealand.
The exchange is working on new offerings in conjunction with the Sydney Futures Exchange to offer grain contracts on canola, barley and sorghum to expand the grains offering as well as a futures contract on the Australian dollar.
A carbon credits market, established to allow world industry to buy carbon dioxide absorbed by new forests to offset gas emitted by industry, is also in development. The internet-based primary market in carbon trading will be operational in October or November.
New options lift futures
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