Comments made by ASX Chairman Maurice Newman at yesterday's Annual Meeting for that company serve merely to confirm that the ASX continues to make attempts to shore up its dominant position in light of growing diversity and competition in his home market.
"Fundamentally the comments made by Mr Newman show a lack of respect for New Zealand as a neighbour and competitor, and for the ASX's own competitor, NZX," said NZX CEO Mark Weldon.
"It is appropriate to respond to the substance, if not the tone of Mr Newman's comments. They confirm for NZX that our Board made the right decision to reject an attempted takeover by the ASX. At that point in time the Board was not convinced that New Zealand capital markets would be run by the ASX in the long-term best interests of New Zealand and New Zealand companies.
"Instead, we would have seen NZX run solely in the best interests of the ASX, which is not aligned with growth in New Zealand or its corporate sector," said Weldon.
"As regards competition in exchange services in Australia, Mr Newman has been arguing, increasingly desperately, for protection for the ASX from competition. But the mere threat of competition to the ASX has already seen trading prices fall and around $18 million of value transferred back to Australian capital market customers. At this time, this is sorely needed - as is more of the same.
"NZX deeply respects Australia, and the accomplishments of its corporate sector. NZX also believes that the Australian corporate sector and capital markets will benefit significantly from exchange competition there and, more broadly, would benefit from a strong New Zealand neighbour that competes effectively on tax and other policy settings," said Weldon.
NZX has repeatedly demonstrated its increasing appetite to compete with the ASX on equal terms, and to harmonise systems between countries where this proves more efficient and of benefit to both.
"To that end, NZX would like the ASX to join with it and seek from our respective governments a passporting arrangement that allows New Zealand and Australian exchanges, and broker-dealers, to compete effectively in each other's markets without duplicative regulation.
"Australia has recently signed such an arrangement with the US. As New Zealand has a well-regulated market, has the Chair of IOSCO chairing our Securities Commission, and has a long-standing Single Economic Market programme supported by both governments, now is the time to enable efficient, attractive and competitive exchange services across New Zealand and Australia," said Weldon.
