NZX is pleased to announce that the Financial Markets Authority has approved the registration and rules for NXT, a new NZX market designed for small and mid-sized businesses.
The NXT Market Rules will be available at www.nxt.co.nz/pages/market_integrity from 30 September 2014. Changes to the NZX Participant Rules for the NXT Market will also be available at www.nzx.com/market-regulation/rules/nzx-participant-rules
The approval is another significant milestone in NZX’s progress towards the launch of NXT, and provides potential NXT listed companies with certainty on the listing requirements.
The timing of NXT’s launch will depend on companies being ready to list. NZX currently expects this to be Q4 2014.
Interested investors can register to receive updates by visiting www.nxt.co.nz and will soon be able to register for a NZX Reference Number. The NZX Reference Number demonstrates that an investor has received and understood a market warning, highlighting differences between NXT and the NZX Main Board.
NXT will have a new disclosure regime that will be simpler for companies and investors. In addition to regular financial reporting, a key feature of disclosure on the NXT market will be quarterly reporting of the underlying drivers of business performance in the form of Key Operating Milestones (KOMs).
Underpinning the market’s design is the new regulatory regime in place in New Zealand, the Financial Markets Conduct Act, which provides the flexibility to develop new markets for different types of companies and groups of investors.
Other points:
- NZX will appoint a market maker and research provider for NXT which will aid liquidity, as well as provide independent analysis to investors on NXT companies. It is a condition of FMA’s approval that NZX demonstrate to FMA’s satisfaction that the arrangements for market making and research are adequate
- NZX intends to continue to support companies that are listed on the NZAX market for the foreseeable future. NZX is no longer accepting new applications for listings on the NZAX and will instead encourage companies to either list on NXT or the Main Board, as appropriate
Key features of NXT:
- 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 efficiency and liquidity
- More information on companies for investors through quarterly updates, research coverage and reporting by companies of key operating milestones