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

 

FMA closes Xero share investigation

FMA closes Xero share investigation, concludes no insider trading

By Sophie Boot

Nov. 10 (BusinessDesk) - The Financial Markets Authority has closed its two-year investigation into trading in Xero shares, concluding there was no insider trading ahead of a capital raising announcement.

The regulator began investigating in September 2015 after a referral by NZX in June that year. Despite no price sensitive information being released to the market, shares in the software developer spiked in the lead-up to the Feb. 25 announcement that the firm had raised $147 million from North American investors.

The FMA wouldn't comment on the case while it was still investigating, but today said it had investigated three offshore institutional investors referred to it by the NZX after unusually high volumes of the shares were traded and the price rose sharply prior to the announcement.

The regulator quickly established trading by two of those hadn't been insider trading, but launched an investigation into the third, which has now been concluded with no evidence of insider trading being found, it said.

All of the trading under investigation involved contracts for difference (CFDs), which are derivative products. Three overseas financial regulators assisted the FMA in obtaining information about the trading parties, including tracing the source of the buying through intermediaries, it said.

"Among other evidence, we reviewed research and due diligence carried out by this investor, on Xero, over a period of months prior to the existence of non-public material information," the FMA said. "The FMA is satisfied that the extent and timing of the party’s investment in Xero matched its investment strategy and did not indicate reliance on insider information. Xero, its staff and directors were not implicated in the investigation."

Xero yesterday announced it will de-list from the NZX in favour of the Australian stock exchange. Its shares are down 2.4 percent to $32.61 today but have gained 91 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: Body massages and Uber are in, DVDs are out, says Stats NZ

Statistics New Zealand has rejigged the consumers price index basket in its latest three-year review, adding body massages, Airbnb and Uber and removing DVD and Blu-Ray players…More>>

ALSO:


StuffMe: Commerce Commission Welcomes Dismissal Of Merger Appeal

In a summary of their judgment released today, Justice Dobson and lay member Professor Martin Richardson dismissed the appellants’ process criticisms and found the Commission was entitled to place significant weight on the prospect of reduced quality of the products produced by the merged entity. More>>

ALSO:

Digital Futures: New Chief Technology Officer Role Created

Communications Minister Clare Curran has called for expressions of interest for the new role of Chief Technology Officer position to help drive a forward-looking digital agenda for New Zealand. More>>

Real Estate: NZ house sales slump in December but prices still firm

The number of property sales across New Zealand slumped 10 percent in December from a year earlier but prices continued to lift, according to the Real Estate Institute. More >>

ALSO:


Dry: Beef + Lamb Launches Drought Resources

The resources include a fact sheet outlining strategies to manage and mitigate the effects of drought, coping with stress on the farm and advice on feed requirements and animal welfare during the dry period. More>>

ALSO:

InternetNZ: Net Neutrality Failure In US "Will Hurt All Users"

InternetNZ Chief Executive Jordan Carter has condemned the decision by the United States communications regulator to undo 2015 open Internet rules, warning that all Internet users will end up worse off as a result. More>>

ALSO: