The New Zealand Exchange Limited (NZX) was established as a company on 31 December 2002 after members of the New Zealand Stock Exchange (NZSE) voted to demutualise the organisation. NZX is now a revenue-generating corporate. Through its listing rules, NZX is responsible for the frontline regulation of companies listed on its three securities markets: the NZSX, NZAX and NZDX Markets. NZX also refulates the conduct of a wide range of market participants, including NZX Firms (sharebroking firms), dealing and clearing participants, and futures and options dealers. In June 2003, NZX listed on its own NZSX Market. A special division of NZX Discipline (a body set up to determine breaches of NZX's rules) regulates the conduct of NZX as a listed company.
Trading on NZX's markets is conducted through NZX Advisors who are accredited by NZX to give investment advice and enter orders into the market. NZX operates a screen-based trading system called FASTER (Fully Automated Screen Trading and Electronic Registration) that replaced the trading floors in 1991. NZX has a user-pays data service that provides a number of products based on trading data. Email NZX for more information. The NZX website contains a directory of NZX Firms (sharebroking firms) and a useful 'Education' section that includes information on how to get started in sharemarket investing.
Listing on the NZX's markets
To be listed on the NZSX Market a company must have:
- an existing board of directors
- have at least 500 public shareholders who are members of the public and who together hold at least 25% of the shares
- an estimated market capitalisation (market value) of at least $5 million.
To be listed on the NZAX Market, designed for smaller companies, a company must have:
- an existing board of directors
- at least 50 shareholders.
To be listed on the NZDX Market a company must have:
- at least 500 security holders who are members of the public, who together hold at least 25% of the debt securities
- an estimated market capitalisation (market value) of at least $5 million.
Once a company is listed on any of NZX's markets, it must follow the NZX Listing Rules that apply to the relevant market. These rules are designed to protect shareholders and investors and ensure companies comply with continuous disclosure obligations. For more information visit NZX.
