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NZX is pleased that the Minister of Commerce, the Hon Craig Foss, has announced that he is granting NZX an exemption that will allow NZX to establish a new market with an alternative disclosure regime which differs from the traditional continuous disclosure requirements of the NZX Main Board.
This approval is a significant milestone in NZX’s progress towards the launch of its new market designed for small and mid-sized businesses.
NZX Head of Markets Aaron Jenkins commented: “The proposed disclosure regime is a critical component of NZX’s new market. It will provide investors with regular and understandable information that is tailored to the size and nature of the companies that will list on the new market.”
The work NZX has undertaken with the Ministry of Business, Innovation and Employment now leads into the application process with the Financial Markets Authority for registration of the new market and approval of the new market rules. FMA’s approval of the market rules will be required before NZX will be able to approve listings on the new market. NZX expects to provide a further update on progress on this front at the end of August.
The new market will operate on NZX’s X-stream trading platform, which handles NZX’s trading of equity and debt securities, dairy and equity derivatives, and other markets such as the Fonterra Shareholders’ Market.
If you would like to receive updates about the launch of the new market, please register your interest at: http://new-market.nzx.com
Key features of the market
- A market aimed at small to mid-sized businesses with an expected market capitalisation of $10-100 million
- Reduced costs and complexity, both during the listing process and ongoing
- More support for companies listed on the market
- A streamlined regulatory environment, with a set of simpler rules and procedures
- The presence of market making and research to aid efficiency and liquidity
- Better information on companies for investors through quarterly updates, research coverage and key operating milestones
