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NZX provides a further update on the policy and commercial initiatives it is undertaking to improve liquidity and increase price transparency in the secondary market.
As announced in December, NZX will implement changes to its trading and clearing pricing, structure, alongside targeted participant rule changes in the second half on 2018. NZX is now seeking feedback from interested parties on the targeted rule changes as part of this review. Specifically, NZX is consulting on the circumstances under which brokers can bring orders to market, and the rules in relation to crossings, including whether to introduce minimum crossing sizes for trades and to consider the current settings for special and international crossings.
NZX is already engaging with the market on changes to the trading and clearing pricing structure. The revised pricing structure removes existing fixed cost fees related to transactions for trading and clearing, while the revised clearing structure will retain tiered cleared value charges to incentivise the amount of value cleared. Changes will see greater cost transparency and efficiency when executing NZX listed product.
These changes will be introduced simultaneously, subject to transition arrangements, and seek to advance the exchange’s secondary market closer to its global peers. Through this NZX seeks to encourage greater market liquidity by ensuring that retail and institutional client orders are executed fairly to promote price transparency, and increase market liquidity.
Rule and pricing amendments relate to equity cash market trading and will not apply to the debt or derivatives markets.
Policy submissions
The closing date for policy submissions is 5.00pm, Friday 11 May 2018. The consultation paper and information about making a submission can be viewed at:
https://nzx.com/regulation/consultation
Submissions should be sent to: consultation@nzx.com
