Merger largely 'irrelevant' to investors as ASX links online

Friday 2nd March 2001

THE COLLAPSE OF MERGER TALKS IS HARDLY THE END OF THE WORLD FOR INVESTORS

By Ray Lilley

From today local "day traders" have access to a whole new market as Access Brokerage links online into the Australian Stock Exchange.

The move makes the future of New Zealand's faltering Stock Exchange largely irrelevant to local investors, opening up real-time trading in stocks on both the Australian and New Zealand markets.

Access Brokerage chairman Bill Garlick said with ASX trading access the company expected half the e-trade activities through its site would be in ASX-listed stocks within about a year. "Within 18 months Access clients will be completing more transactions across the Tasman than in New Zealand."

The Access Brokerage electronic trading system, which integrates trading on the two markets on its website using customised software, allowed New Zealand clients to settle their transtasman trades in kiwi dollars from their local call accounts.

It charged the same fee level ($A29.50) for ASX trades as it charged for local deals ($NZ29.50). Australian deals above $25,000 incur an extra fee from the ASX.

Online from this week through an alliance with ETrade Australia, the electronic trading system "will deliver benefits similar to those promised by the failed merger" of the two transtasman exchanges, Mr Garlick said.

"This facility means New Zealand investors have full access to the Australian exchange. From the point of view of the investor, [the NZSE's future] is irrelevant."

The first trade on the system, for 1000 BHP shares, took about half a minute to transact through to cash settlement stage.

He said Access had a "small but growing number" of day traders, people who have quit their day jobs to trade electronically on equity markets from a PC.

Access has processed more than 100,000 local trades worth more than $500 million through its site since it went live with New Zealand equities in September 1999.

"We suspect we're probably the biggest e-commerce business in New Zealand," with up to half the brokerage's daily trades coming through the net.

Access expects the ASX link will boost the investing activity of its clients, and not simply become a substitute for New Zealand equities.

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