NZX has completed its formal consultation process regarding its proposed new market, which is expected to launch in the middle of this year.
This follows the release of a Consultation Memorandum on 14 March 2014 relating to proposed market rules for NZX’s new growth market, and certain legislative exemptions that are necessary to accommodate the disclosure framework for the market.
NZX received 20 written submissions from a variety of stakeholders, including industry bodies, brokers, corporate advisory firms, issuers, lawyers and directors.
Submissions were broadly supportive of the concept, aim and proposed structure of the new market, and of the proposed periodic disclosure framework.
NZX has applied to the Minister of Commerce for an exemption from the continuous disclosure requirements in the Securities Markets Act.
In addition, NZX will apply to the Financial Markets Authority for registration of the new market and approval of the new market rules. NZX expects to make some refinements to the draft rules based on feedback received.
NZX proposes to publish submissions received, where the authors have given permission, at a later date.
Key features of the market include:
- A market aimed at small to mid-sized businesses with an expected market cap of $10-100 million
- Reduced costs and complexity, during both the listing process and ongoing
- More support for companies listed on the market
- A streamlined regulatory environment, with a set of simpler, template based rules and procedures
- The presence of market making and research to aid liquidity