NZX has purchased the Political Stockmarket website, which has been re-launched as PredictMarkets from today.
Political Stockmarket was developed by Qi-Shan Lim, an Engineering student from Auckland University. Recognising the innovative potential of the site, NZX contacted Qi-Shan with a view to working together to further develop the site and its offerings.
PredictMarkets is a free to access online markets platform where members can trade contracts on future real-world outcomes with virtual cash. There are three currently active markets on the site, two related to outcomes of the upcoming 2008 general election on November 8. The "2008.PARTY" market predicts the percentage point of vote that will be received by each political party in the election. The "2008.GOVT" market predicts the party that will form the next government.
New this week is "2008.OCR.OCT", a market predicting the outcome of the Official Cash Rate (OCR) announcement on October 23 from the Reserve Bank of New Zealand. In the near future the range of markets will be extended to include other economic and market outcomes such as exchange rate and NZX 50 Index movements.
NZX Head of HR and Communications, Rowan Macrae said, "NZX recognises talent and innovation on any scale and in this case we identified some great potential in an undergraduate student and the platform he had created.
"Qi-Shan will be given the opportunity and resources to develop his idea further and will work with NZX on a number of online projects. The team are looking forward to taking PredictMarkets as far as possible," said Macrae.