New Zealand's NZX faces technical issues as trading volumes soar

[BENGALURU] New Zealand stock exchange operator NZX said on Wednesday it was taking steps to address technical issues it faced in the last six trading days due to an "around four-fold" surge in trading volumes since early 2020.

It said it has appointed Ernst & Young to conduct an independent external review of the issues and potential remediation actions, including hardware and software upgrades.

The coronavirus outbreak, coupled with a historic crash in oil prices, has generated tremendous volatility in global equity and commodity markets as dealers scramble to hedge investments, sell off unattractive holdings and even buy cheaper stocks.

NZX said the issues mainly affected its clearing and settlement system, "at a time there is a huge amount of interest and unprecedented demand in the New Zealand share market."

REUTERS