Reaction To ASX Foreign Exempt Decision From NZSE

The ASX announced on Wednesday that it is to proceed with the amendments to its listing rules recorded in its exposure draft of 31 January. These amendments will increase (by a factor of 40 times in respect of net assets and 20 times in respect of annual profits) the size thresholds for companies to have foreign exempt listing on the ASX.

ASX has stated that it has decided on these changes after "extensive consultation". However, ASX has not consulted with the NZSE nor, other than in relation to implementation of its policy, with the companies affected. The NZSE provided detailed submissions to the ASX on 6 November 2001, and on 14 March 2002 after the exposure draft was released. The second submission concluded: "…it is the firm view of NZSE that none of the reasons advanced by ASX provide any credible justification for the proposed changes.

As it is not clear now whether ASX intends to respond to the submissions received, the NZSE is providing a copy of its submissions on its website so that interested parties may judge for themselves the merits of the ASX decision.