In addition to this, a number of other changes promote transparency in the Exchange's operations, including increasing the transparency of the Market Surveillance Panel and the various bodies exercising a disciplinary function. The NZSE is also seeking comment on proposed strengthening of the corporate governance aspects of the NZSE Listing Rules, to bring it at the forefront of international best practice.
The key proposed changes to the Listing Rules include:
- Changes to the continuous disclosure regime and related procedural requirements to take into account the significant changes in the Securities Market and Institutions Bill and comment received by the Exchange in response to its March consultation paper.
- Reduction in the time periods for submitting annual (from four to three months) and half yearly (from four to two months) reports.
- Allowing Issuers to apply for a trading halt for a limited period.
- Enhancing the participation of Exchange officers in Market Surveillance Panel proceedings and increasing the transparency of the decisions taken by the Panel by requiring publication of Market Surveillance Panel decisions in certain circumstances.
- Adjusting the fee structure for Market Surveillance Panel matters and imposing a delisting fee on Issuers.
- Imposing more stringent corporate governance requirements on issuers, including imposing requirements for the board of an issuer to have prescribed numbers of independent directors, requiring an issuer to have an audit committee, separating the roles of chief executive officer and chairperson of the board, setting minimum qualification standards for directors and requiring that non-compliance with a best practice corporate governance code be reported to the Exchange.
Changes to the Business Rules reflect the changes required should members of the NZSE resolve to approve a restructuring proposal under the New Zealand Stock Exchange Restructuring Act 2002. Other changes focus on providing clarity to the Business Rules. Specific changes include:
- Encouraging transparency of decisions by bodies acting in a disciplinary capacity and increasing the penalties available to these bodies.
- Changes to the short selling provisions of the Regulations.
- Changes to the provisions of the Regulations dealing with the FASTER online trading system to clarify reporting requirements and obligations concerning Special Marriages and Stands in the Market.
- Changes to the level of liquid capital required of members.
The full text of the proposed rule changes and commentary are available on the NZSE website www.nzse.co.nz.
