The payment follows the settlement of a complaint to the Exchange relating to JBWere's involvement in the July 4 transaction involving 50.33 million shares in Rubicon Limited.
Exchange Chief Executive Officer, Mark Weldon said the NZSE now had information, that had not previously been disclosed, about the basis on which JB Were was satisfied that they were acting in accordance with Rule 8, which requires "good stockbroking practice".
The NZSE is now aware of the procedural steps JB Were took to confirm it was acting appropriately, and acknowledge that they were acting in good faith in carrying out their client's instructions.
"However we are required to address the issues raised by this complaint and are confident that this outcome will provide increased market certainty."
Weldon said JBWere have committed to following the NZSE's formal interpretation of Regulation 6, which relates to Stands in the Market, from now on.
As well as redrafting its rules, the NZSE also plans to release a policy statement on Regulation 6, Rule 8 and procedures to be followed when interpretation of any of the Rules or Regulations is required.
"JBWere's contribution will be directed towards funding this policy statement" said Weldon.
The following is a release by JBWere (NZ) Limited: JBWere's Chief Executive Officer, Clark Perkins, said "JBWere is pleased that, after further discussions, the NZSE has decided to conclude its investigation into this transaction. JBWere has at all times acted in good faith and in accordance with good stockbroking practice". JBwere has agreed to make a contribution to the process of redrafting of the NZSE's rules and regulations, which will be beneficial for the market and all its participants. "We believe this is a constructive and responsible way to end this matter", said Mr Perkins.
