Healthy capital markets are vital for a vigorous, dynamic economy. Demutualisation has proved to be a highly successful model for ensuring the growth and efficiency of these markets throughout the world. The NZSE's move to a corporate structure demonstrates the Exchange's desire to play a leading role in the growth and future direction of New Zealand.
"The new corporate structure will better position the NZSE to respond to the increasingly competitive and global market environment," says NZSE Chairman, Simon Allen. "At the same time, it provides the incentives and flexibility the Exchange needs to grow, develop and support both our capital markets and the New Zealand economy as a whole."
Mark Weldon, NZSE Limited CEO, sees the Exchange's over-riding goal to grow the New Zealand capital markets into a world-class environment capable of attracting both national and international investors, while still providing a low cost marketplace for companies seeking access to much needed capital for growth. He has assembled a seasoned senior management team to ensure these aggressive goals become a reality. The newly formed Executive management group is now working through a three-year business plan, designed to deliver much needed growth and change for New Zealand's capital markets.
The most significant outcome of the move to a limited liability structure sees the Exchange's member firms and individual members become NZSE Firms and NZSE Stockbrokers, with those qualifying and entitled members receiving ownership entitlements. This separated ownership of the Exchange from access to the market means both can now be easily broadened. It also subjects the Exchange to a greater degree of transparency, accountability and market discipline, which will improve confidence and allow for quick and more effective decision-making by the company.
Weldon believes the new structure will help create a virtuous cycle of growth. "It provides the best platform and opportunities for growing the New Zealand economy. It allows us to build a strong and efficient marketplace where the needs of all New Zealanders can be realised - from companies raising capital, to investors, brokers, government and the general public. NZSE Limited better represents the broader interests of all these stakeholders."
NZSE Limited will continue in its important role of co-regulator of the market with the Securities Commission. This partnership is intended to ensure independence, regulatory best practice and a safe and secure trading environment that will help attract investor capital to the New Zealand market. NZSE Firms and Stockbrokers will be governed by new NZSE Business Rules which come into effect from today.
