NZX received a large number of submissions from a wide variety of market participants all of which have been carefully reviewed and ideas incorporated where appropriate.
"We were very pleased with both the number and well developed nature of the submissions we received," said Mark Weldon, NZX CEO. "Many of the suggestions helped to add clarity and depth to the proposed Rules and were integrated into the final proposal. We feel confident that the final proposal reflects the input and energy of both the people that will use them and those that will be governed by them," said Weldon.
The submissions highlighted two key areas of concern to market participants. Firstly, the disallowance of the bundling of orders as set down in Section 11.4. Assessing the feedback received NZX has revised this section and will allow the bundling of orders within certain prescribed limits.
Secondly, where the NZX draft rules only allowed exclusion lists on the first offer of securities a change has been made to reflect the comments made in the submissions and extend the rule to secondary offerings.
The proposed new Participant Rules provide a simpler, more flexible framework that better reflects the wide and varied roles participants play in New Zealand's capital markets. This framework also recognises the increasing involvement of several new participants, including banks.
The new NZX Participant Rules will replace the NZX Business Rules, NZX Regulations and Code of Practice. They have been renamed the "NZX Participant Rules", to better reflect who these rules will apply to and the expanded participant base.
A copy of the proposed new NZX Participant Rules showing all changes can be found on the NZX website at www.nzx.com/regulation.