NZX's half year 2014 Shareholder Metrics continue to show positive growth in New Zealand's capital markets.
This includes four listings during the first six months of the year: Genesis Energy, Inturei Education Group, Serko and Gentrack. These were followed by the listings of IkeGPS and Scales Corporation, which both listed last week. Metro Performance Glass and Vista Group International are scheduled to list in July and August respectively.
Total new capital of $3.52 billion was listed during the half year, slightly down on the same period last year, which included the listing of Mighty River Power.
Trading volumes remained strong, up 21.9% on the prior comparable period. While value traded in June was up 8.8%, total value traded in the half year of $17.6 billion was down on the prior period.
NZX's Dairy Derivatives continues to demonstrate impressive growth, with the month of June the biggest trading month since the market launched in late 2010, with 10,346 lots traded. A total of 32,389 lots were traded in the first half of the year, up 301.6% compared to the same period last year.
NZX’s Dairy Futures were named a finalist this month in the Futures & Options World (FOW) Awards for Asia 2014, for Best New Contract. The awards celebrate the pioneers of derivatives trading in APAC and the Middle East across brokerages, exchanges and technology providers. The winners will be announced in September.
At NZX’s Australian business Clear Grain Exchange, despite an early end to the 2013/14 grain season, tonnes traded on the exchange were up slightly on the prior comparable period, with 317,223 tonnes traded.
Agri Information metrics demonstrated that the sector has fully recovered from the severe drought conditions that impacted 1H 2013. Advertising pages were up 10.5% on the previous comparable period, and general agri subscriptions were up 5.8% to 10,351.
NZX's funds management business saw positive movement in both funds under management and units on issue, up 13.6% and 6.1% respectively.
NZX Regulation metrics & general commentary
NZX released its second quarter 2014 regulation metrics today. These show NZX Regulation commenced 32 investigations during the quarter in relation to Issuers, in addition to the eight investigations that were ongoing at the beginning of the quarter. There were 10 investigations that remained ongoing at the end of the quarter. There were 21 investigations in relation to participants commenced this quarter.
Other progress during the period:
- In June, NZX welcomed the Financial Markets Authority’s (FMA) third annual General Obligations Review, which concluded that during the 2013 review period NZX complied with all of its statutory obligations to ensure that each of our registered markets and the derivatives market were fair, orderly and transparent.
- Also in June, NZX announced the appointment of Joost van Amelsfort as NZX’s Head of Market Supervision, effective 4 August 2014. The creation of the role is a further step to strengthen NZX’s regulatory role. It reflects a split of the current Head of Regulation role in two, to separate regulatory decision making from policy development.
- NZX’s annual participant inspection programme is on-track. The 2014 programme commenced with a review of NZX’s risk profiling process, which uses recognised risk management techniques to determine an overall risk rating for each participant. NZX liaises with FMA in relation to on-site inspections to coordinate visits and where practicable, to reduce duplication.
- The Financial Markets Conduct Act (FMCA) comes into effect in stages this year, following a comprehensive programme of work focussed on improving the regulation of New Zealand’s financial markets. NZX is considering the amendments required to the various rule sets as a result of the legislative changes.
- One of the major benefits of the FMCA for listed issuers came into effect on 1 April. This provides the ability for listed issuers to raise additional capital via the same class issuance provision. This will reduce the cost for listed companies raising capital by a further issue in a listed class of debt or equity. This provision has been utilised by a number of issuers during the period.
- In June, following public consultation, NZX amended the NZ Markets Disciplinary Tribunal Rules to change the structure and membership of the Appeal Panel; and to make other minor amendments relating to the terms of appointment of Members; the award of costs; discretion to extend timeframe of determination; and penalties.
- This month, NZX welcomed the announcement by the Minister of Commerce, the Hon Craig Foss, that he would grant NZX an exemption that will allow NZX to establish a new market with an alternative disclosure regime, which differs from the traditional continuous disclosure requirements of the NZX Main Board. This approval is a significant milestone in NZX’s progress towards the launch of its new market designed for small and mid-sized businesses.