NSX to collaborate with ASX

The Stock Exchange of Newcastle (NSX) expects to begin operation of its new, fully electronic stock market in the last quarter of 1999. The NSX market, which is subject to final regulatory approval, will be capable of trading most Australian securities. When trading begins on the Newcastle exchange, it will take place on an automated trading facility called NETS, which is being developed for NSX by the Australian Stock Exchange (ASX). NETS will be based on ASX's own highly successful Stock Exchange Automated Trading System (SEATS). The two exchanges have also agreed that ASX will provide electronic clearing and settlement facilities for NSX trades through ASX's CHESS settlement system. In addition, the ASX Settlement and Transfer Corporation Pty Ltd will allow NSX-quoted securities to be held in dematerialised form on the CHESS system. The NSX market will be regulated by state-of-the-art listing and business rules developed over the last two years for NSX. The market will be headquartered in Newcastle but will take listings from throughout Australia. NSX believes its alternative equity market will fill gaps in the range of capital-raising facilities offered by existing equity markets of Australia. NSX is particularly focussed on medium sized regional enterprises, high-tech and start up operations. NSX is currently in discussions with a number of entities proposing to float on the NSX market. Proposed listings include: a regional airline, several equity investment companies, and Australian Technology Venture Capital Limited, which will be a seed capital consulting and investment fund to provide capital for the development of Australian technology together with commercialisation, legal and accounting services.