SHORT-TERM DEPOSITS

Press, Volume CVI, Issue 31088, 17 June 1966, Page 14

SHORT-TERM DEPOSITS

Unofficial Market Move (N.Z. Press Association) AUCKLAND, June 16. Short Term Deposits, Ltd., Auckland, one of the five dealers in the official shortterm money market, is to expand into the unofficial market It will also assist in widening the market for Government and local body securities.

To enable the expansion, a new holding company. Security Dealers, Ltd., has been registered. It will have a paid capital of £250,000. The present shareholders in Short Term Deposits will exchange their shares for a holding in the new company, of which Short Term Deposits will be the official money market subsidiary. A second subsidiary, Secured Deposits, Ltd., which has been registered with a capital of £lOO,OOO, will operate in the unofficial market, in which there is already a substantial volume of business. (The difference between the two markets is that in the unofficial market the securities covering the deposits are not confined to short-dated Government stock. Nor does the Reserve Bank give facilities as lender of last resort) Mr J. G. Russel, manager of Short Tenn Deposits, becomes general manager of Security Dealers. Mr A. R. Miller, formerly manager for New Zealand of the Producers and Citizens' Co-op. Insurance Company, will be manager of Short Term Deposits, and Mr A. E. Triggs, formerly of Estates and General Investments, Ltd., London, will manage Secured Deposits. The principal shareholders are the National, New Zealand and South British insurance companies, Government Insurance Commissioner, State Insurance general manager, Provident Life Assurance Company, Prudential Assurance Company, Norwich Union Life, and Butland Industries.