Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZX names new market "NXT" as it awaits FMA go-ahead

NZX names new market "NXT" as it awaits FMA go-ahead

By Suze Metherell

Aug. 28 (BusinessDesk) - NZX, the stock market operator, has revealed its new market with lighter disclosure requirements will be called NXT, as it waits on the final go-ahead from the Financial Markets Authority.

The Wellington-based stock market operator wants to lure more small-to-medium sized firms to the bourse with less-costly disclosure rules, filling a funding gap for SMEs that was first identified in the 2009 Capital Markets Development Taskforce led by investment banker Rob Cameron. In July, Commerce Minister Craig Foss granted a ministerial exemption allowing a less-onerous disclosure regime for NZX's NXT.

"Many businesses operating in New Zealand need additional capital for growth," chief executive Tim Bennett said in a statement. "Currently it's time consuming for them to find capital, and can be a drain on their limited resources. That's the problem the NXT market will address."

NZX is now waiting on final approval on NXT market registration and rules from the FMA and said its expects to launch NXT in the final quarter of this year, reliant on approval and the number of companies ready to list. FMA had 40 business days from the NZX application to make a decision, which approximately falls in late September. Papers obtained under the Official Information Act, detailing advice Foss received over the ministerial exemption, show NZX had been keen to launch NXT in the first half of this year.

Companies will be able to use key operating metrics to outline their business performance instead of more onerous prospective financial information requirements in their projections, and will have a higher threshold on what information triggers market disclosure than exists in continuous disclosure. NXT will ultimately replace the NZ Alternative Market, and once it is launched no new additions to the small cap market will be accepted.

The market has a distinct website and branding from the NZX, as well as a risk warning where investors are informed of the differences between the new market and other NZX markets.

NZX's proposed new market aligns with the government's own agenda to deepen New Zealand's capital markets. The Capital Markets Development Taskforce proposed exemptions for markets to coax smaller companies to list and more easily raise capital in the early stages of business, while the intent behind the Financial Market Conduct Act, which is coming into effect throughout the year, is to promote growth companies and encourage diversity of financial products.

The NXT market will provide investors with company research to further promote confidence and liquidity on the new bourse. Listed companies will have to appoint independent directors and a dedicated 'sponsor' to provide an advisory role for the first three years of listing. NZX will also have the right to refuse a listing and companies must show the operating metrics chosen do accurately measure the company's performance. New market companies will also be required to graduate to the NZX's main board once they reach a certain size.

The ministerial exemption will apply under the Securities Act until December, when the Financial Markets Conduct Act comes into effect. Cabinet has agreed to enact regulations to allow the exemption under the new law.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news