23 Oct 2013

NZX faces a sea change in vibrant markets - CEO

7:47 am on 23 October 2013

The head of the NZX says the stock exchange is at the front end of a sea change and the equity and debt markets are becoming more vibrant than at any point in the last decade.

Tim Bennett.

Tim Bennett. Photo: RNZ

The NZX has created the role of Head of Markets to support the increased activity in the capital markets.

The former general manger of Fonterra's Trading Among Farmers, Aaron Jenkins, has been appointed to the position.

However, NZX chief executive Tim Bennett says activity in the market has not ramped up outside traditional equities yet.

"Interest rates are low so we have not seen the levels of debt issuance that we have in the past, for the obvious reasons," he says.

But Mr Bennett says the change is structural, as savings rates go up and Kiwisaver begins to take hold.

He says the formation for the Financial Markets Authority has helped rebuild trust in the market.