New contract cleared
A new three-year Government stock futures contract had been cleared by International Commodities Clearing House and would start trading tomorrow, the New Zealand Futures Exchange announced yesterday.
It would be followed a week later, on September 15, by the introduction of a related options contract.
Both would be traded alongside the existing futures and options contracts in five-year Government stock. The managing director of the Exchange, Mr Len Ward, said the new contracts would provide an efficient means for offsetting risk for the rapidly expanding interest rates swaps market which gen-
erally trades on a threeyear basis. (Interest rate swaps are a means by which banks and corporate borrowers and lenders can alter the terms of various debt from floating rate to fixed rate and vice versa.) The swaps market is estimated at $5-$8 billion a year.
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Press, 7 September 1989, Page 22
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140New contract cleared Press, 7 September 1989, Page 22
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