NZX to launch equity derivatives in April

30 March 2026 – NZX is pleased to announce the launch of the S&P/NZX 20 Index Futures on 28 April 2026, providing investors with a low-cost hedging tool to manage risk or gain exposure to New Zealand’s equity markets. Index futures are exchange-traded contracts that lock in a price for exposure to the S&P/NZX 20 Index, with settlement on a set date in the future. On expiry, the contract is cash settled based on the index level, so gains or losses reflect how the index has moved over the contract term. This will allow investors, including KiwiSaver funds, to adjust their New Zealand equity exposure as markets change, while helping support trading activity and liquidity in NZX listed companies. New Zealand has been an outlier among first-world economies in not having liquid index futures markets, especially when comparing against other similar developed economies such as Poland, Portugal and Sweden. NZX General Manager Cash and Derivatives Markets Nick Morris says the S&P/NZX 20 Index Futures is underpinned by industry demand and supported by a Cornerstone Group. This group has outlined demand for the contracts and demonstrated a willingness to support the development of liquidity. “The S&P/NZX 20 Index Futures provide investors with an efficient tool to manage risk or gain exposure to New Zealand equities,” Mr Morris says. “Subject to final regulatory approval, NZX has appointed BNP Paribas to serve as the designated Market Maker to support liquidity by posting active two-way prices and facilitating smoother trading.” “The support of our Cornerstone Group demonstrates the appetite for these products, and liquidity from our committed market maker is a key building block for this launch. If we can build liquidity locally under this new platform, it will provide an attractive entry point to NZ equity market exposure for large offshore institutions.” “NZX plans to grow participation across the wider market ecosystem, with retail access expected to develop as brokers and trading platforms connect to the market. The contract size has been set at $1 per index point to support retail participation.” The members of the Cornerstone Group are: • Accident Compensation Corporation (ACC) • ANZ New Zealand Investments Limited • BlackRock Investment Management Australia Limited • BT Funds Management (NZ) Limited • Fisher Funds Management Limited • Harbour Asset Management Limited • Jarden Securities Limited • Macquarie Bank Limited • Milford Asset Management Limited • NZ Super Fund • Smart (formerly Smartshares) The Cornerstone Group will be supported by a network of existing and new Trading and Clearing Participants, including Jarden Securities Ltd, BNP Paribas, and, subject to regulatory approval, Morgan Stanley and Craigs Investment Partners NZX Chief Executive Mark Peterson says the launch of the S&P/NZX 20 Index Futures addresses a longstanding product gap in New Zealand's capital markets. "New Zealand has been an outlier among comparable developed economies in not having a liquid equity derivatives market. These contracts give investors the tools to efficiently manage their New Zealand equity exposure and lay the foundation for a broader derivatives platform that supports the growth of our capital markets," Mr Peterson says. “The launch of the S&P/NZX 20 Index Futures is an important step in NZX’s strategy to build a local derivatives platform that supports efficient portfolio construction, improved liquidity management and greater investment choice for market participants. This has been years in the making and reflects the hard work and long-term commitment of our team to make market access easier and to grow greater levels of on-market activity. Working constructively alongside the broader market ecosystem, we have made the technology and regulation changes to deliver this for New Zealand's capital markets.” Mr Peterson says NZX has invested in enhanced trading, clearing and connectivity capabilities to support the launch of the redesigned futures contracts, setting the exchange up for a scalable foundation for future product expansion. NZX is pleased to announce that Trading Technologies is connecting to the NZX Derivatives Market, providing connectivity from the Cornerstone Group to NZX Derivatives Trading Participants. Trading Technologies is a Software-as-a-Service (SaaS) technology platform provider to the global capital markets industry. “The launch of the S&P/NZX 20 Index Futures represents an important step in expanding access to New Zealand equity derivatives,” says Alun Green, EVP and Managing Director, Futures and Options, at Trading Technologies. “By connecting to NZX we’re providing global and domestic participants with direct access to these contracts through the TT platform, supported by our full suite of execution, analytics and risk tools.” ENDS Background Index futures give New Zealand investors a new way to manage their exposure to the local share market. Investors, including KiwiSaver funds, can use them to adjust their New Zealand equity exposure as market conditions change, helping to protect portfolios during periods of volatility without having to sell their underlying investments. They also allow investors to short the market, providing a tool to help protect their portfolio during periods of market weakness, all through a single contract. Until now, investors wanting this kind of tool have had to access overseas markets that aren't immediately correlated to New Zealand to get it. Having it available locally is a significant step forward for New Zealand's financial markets. Over time, as retail brokers and trading platforms connect to the market, everyday New Zealanders are expected to be able to access the product directly. While New Zealand previously had its own futures exchange, the New Zealand Futures and Options Exchange, it was acquired by the Sydney Futures Exchange in 1992 and liquidity gradually migrated offshore. NZX has longstanding experience developing and operating derivatives markets, most notably through the SGX-NZX Global Dairy Derivatives suite, which has supported New Zealand farmers, producers and manufacturers since 2010 in managing exposure to NZ milk prices and dairy commodities. For further information, please contact: Media and Investors – Simon Beattie – 021 702 694 About NZX For 160 years we have been committed to connecting people, businesses and capital. Our vision is to be a trusted New Zealand business delivering sustainable wealth, value and opportunities for all. NZX operates New Zealand's equity, debt, funds, derivatives and energy markets. To support the growth of our markets, we provide trading, clearing, settlement, depository and data services for our customers. We also own Smart, New Zealand's only issuer of listed Exchange Traded Funds (ETFs), KiwiSaver provider SuperLife, and funds manager QuayStreet Asset Management. NZX Wealth Technologies is a 100%-owned subsidiary delivering rich online platform functionality to enable New Zealand investment advisors and providers to efficiently manage, trade and administer their client's assets. Learn more about us at: www.nzx.com