NZX Participants:
The pricing changes being introduced to NZX Participants are necessitated in part by the considerable work undertaken in the last six months to develop the recently implemented NZX Participant Rules. These Rules form the backbone of an entirely new market structure in which participants can interact with NZX and with the New Zealand markets in the manner they choose, rather than the one-size fits all approach of the past. As a result, some participants should see a reduction in fees.
“The new NZX Participant Fee Schedule creates a simple, transparent and easily understandable pricing structure and is designed to level the playing field across all market participants,” said Rob Russell, NZX CFO.
On the trading side, NZX has reduced the number of settlement charges from more than 30 to one and introduced a flat fee of $1.05 for each side of the transaction process. This represents the average fee charged for settlements over the last 12 months, not a net price increase.
Key changes:
- Modular fee structure with each category priced differently. This should mean lower fees for some participants.
- Clearing & Settlement fees now a fixed charge of $1.05 per side of a transaction. This is based on the average price traded over the last 12 months.
- 10% increase in Telecommunications fees. This will only partially recover operating costs of NZX's new and improved network.
- No ongoing charge for NZX Sponsors who only bring issues to the NZAX Market.
NZX Listed Issuers:
Changes to Listed Issuer pricing reflects the increased services provided by NZX, and the growing value to companies generated by these services. Such services include the introduction of dedicated relationship managers, the launch of the electronic market announcement platform (MAP), the refinement and tightening of regulations and the recent re-branding and increased profile of NZX markets.
“The new NZX Issuer Fee Schedule bring us more into line with the services that NZX actually provides and is the final component of a full pricing review begun last year,” said Russell.
“It is important to note that the review included a comprehensive comparison of pricing by other global exchanges and NZX remains significantly cheaper than the ASX on all its prices,” said Russell.
Key changes
- No change to minimum Annual Fee for NZX Issuers with market capitalisations of less than $20m.
- 15% increase for all NZX Listed Issuers with market capitalisations of $20m and above.
NZX will be sending correspondence to all NZX Listed Issuers and NZX Participants directly which outline in detail the changes affecting their business.
For more information, please contact:
Bridgit VivianNew Zealand Exchange Limited
04-496-2874
