Outcomes of the pricing and service review are provided in the summary below:
NZX Data retail & non professional servicesThere will be a 66% reduction in the fees charged to retail and non professional users for accessing real time information. This is aimed at encouraging the development of data products targeting retail investors.
Market Participant pricing & servicesThe trade value charge applicable to each equity trade will increase from the current level of .15 basis points to .20 basis points. The fee cap will remain at $20 per equity trade. There will be a new value charge of .20 basis points for fixed interest trades with a cap of $10.
This will mean in practice that the value charge for a $10,000 equity trade will go from $.15 to $.20.
In conjunction with these changes, Market Participants can now earn up to 100% fee rebates on price incentive trades. This means that, where companies are listed but have relatively low liquidity on the New Zealand market, Market Participants will be encouraged to market-make the stock, thereby encouraging trades and qualifying for a full fee rebate.
Listed Issuer pricing & servicesAnnual Listing fees paid by Listed Issuers of equity will increase 10%. For a top 50 company with a market capitalisation of around $200 million this increase translates to a change from $19,650 to $21,700
In conjunction with this increase, NZX is providing two key services to Listed Issuers without charge. 10 hours annually of standard Regulatory Service will now be included in the Annual Listing fee. Feedback to NZX indicates that Listed Issuers are seeking certainty when it comes to access to NZX Regulatory staff and value the improved level of service available. For 64% of companies, use of the new Regulatory Service of 10 hours will result in an overall decrease in total fees paid each year.
In addition, NZX will be providing all Listed Issuers free access to its online database product i-Search. i-Search provides fully searchable access to complete market announcements made to NZX in one central location. The i-Search subscription has a market value of $2,280 per annum to each issuer.
Fees for initial capital raisings (IPO’s) will not change. The fees for subsequent capital raisings, which are currently charged at a very substantial discount to ASX prices (approximately 60%) will be increased. In practice, this will mean the fee for a subsequent capital raising of $500,000 will be $1,278 instead of $944 and $10,670 instead of $7,915 for a subsequent capital raising of $25 million.
Listing fees for NZAX companies with a market capitalisation of less than $15 million will remain unchanged at a flat rate of $7,500.
Full details of the pricing and service offering have been mailed directly to Listed Issuers and Market Participants, and a copy of the pricing schedule is available from www.nzx.com/nzxmarket/pricing
ENDSAbout New Zealand Exchange Limited (NZX)
NZX operates New Zealand’s sole registered securities exchange. Utilising its proprietary FASTER technology, NZX facilitates fully electronic trading, clearing and settlements across its three principal markets, the NZSX – Stock Market, the NZDX – Debt Market, and the NZAX – Alternative Market. In addition, NZX offers a comprehensive suite of data products, indices and funds, and is responsible for the ongoing surveillance and regulation of New Zealand’s securities markets.
By providing a ready market for capital raising and business growth, NZX is at the forefront of business in New Zealand. At both the Board and management levels, NZX is committed to developing and ensuring the integrity and international competitiveness of New Zealand’s securities markets. NZX demutualised in October 2002 and became a publicly listed company on 4 June 2003. For more information, visit www.nzx.com.
