NZX to assume regulatory responsibility for futures and options in New Zealand

13 February 2004 - As announced by the New Zealand Securities Commission and NZX on 17 September 2003, NZX is planning to assume responsibility for frontline regulation of the activity of futures dealers in New Zealand no later than 3 May, 2004. The current agreement will see NZX Regulation meet the requirements for both new and existing futures dealers, and the delivery of a seamless transition once NZFOE withdraws from its current regulatory role in New Zealand.

NZX has developed its Futures and Options Rules to match the structure of the proposed NZX Participant Rules and has drawn heavily on the content of the NZFOE Participant Rules to ensure consistency with the current regime. NZX has also consulted with existing Futures & Options dealers in New Zealand to develop the most effective regulatory framework for this market.

"We formulated the Futures & Options Rules with the investing public in mind and were determined to create a framework that would give them confidence in the quality of advice being offered on, what are sometimes considered, complex investment products," said Elaine Campbell, NZX General Counsel. "Having one framework for all futures and options participants in New Zealand should help ensure consistency and market integrity."

NZX will regulate firms and individuals in New Zealand who;

1. give advice on futures & options contracts; and/or
2. manage client funds for the transfer and sale of futures & options contracts
3. who are not subject to direct regulation of (a) and (b) by another authorised Exchange.

The Sydney Futures Exchange (SFE) will remain responsible for the regulation of all trading activity on the SFE. The Sydney Futures Exchange will also continue to have the responsibility for regulating the activity of its direct Participants that act on behalf of clients in New Zealand in respect of the New Zealand products listed on its market.

NZX will publish the proposed Futures & Options Rules on 20 February, 2004. It will also host a conference call for all market participants to submit comments on the Futures & Options Rules, at 9am 2 March, 2004. To register for this call, contact neil.hammond@nzx.com.

The final Futures & Options Rules are scheduled for approval by the New Zealand Securities Commission by 12 March, 2004.

In addition, NZX will be conducting regulatory accreditation courses on the new Futures & Options Rules (Module 6, NZX Futures & Options Accreditation Course), for those participants seeking to become designated Futures & Options Participants. These courses will be held regionally from 15 March to 26 March, 2003. For more information on registering for this course contact neil.hammond@nzx.com.

Timetable & Key Dates

NZX to publish the F & O Rules	Fri, 20 February
Conference call with participants regarding F & O Rules	Tues, 2 March
Securities Commission approval of F & O Rules	Fri, 12 March
NZX Futures & Options Accreditation Course, Module 6	15 March - 26 March
Submit applications for regulatory approval from 3 May	Thurs, 8 April
NZX approval of applications	12 April - 30 April
NZX assumes regulatory responsibility in New Zealand	3 May
SFE to list NZFOX products on behalf of NZX	May

For more information, please contact:

Bridgit Vivian
New Zealand Exchange Limited
04-496-2874
027-472-7599