has revealed its 2017 regulatory agenda focuses as it aims to further strengthen and maintain confidence in the integrity of New Zealand’s markets ecosystem.
In its second annual NZX
Regulatory Agenda report
, the markets operator identified market infrastructure, orderly markets, market management, risk-based regulation approach, and market development as its key areas of focus.
Under market infrastructure, NZX
wants to embed a revised corporate governance best practice code and a revised administrative trading halts regime; review NZX
participant rules and guidance and the NZX
Main Board/Debt Market rules; and launch a participant portal for periodic reporting and notification obligations. These will reflect international best practices and principles as well as technological and legal trends, and encourage on-market trading, it said.
For orderly markets, it wants to clarify trading conduct guidelines, improve inspection programme and risk profile procedures, seek Mutual Assistance in Business Regulation Act 1992 (Australia) membership and access to information, and embed an enhanced surveillance tool.
In terms of market engagement, the NZX
wants to enhance visibility of its investigations and enforcement, and increase issuer and broker engagement. Part of the effort will be an annual series of report on investigations and enforcement.
With risk-based regulation, the organisation is focusing on issuers, participants, and financial products that present the most significant risks to operating fair, orderly, and transparent markets. NZX
will conduct thematic reviews of issuers and will review offer documents using a risk-based approach.
For market development, NZX
will focus on supporting issuers, particularly those new to operating as a listed company, small- to medium-sized issuers, and new board members and senior managers. It will also focus on product and market design, taking into account the increasing variety of financial products for investments and those available for issuers, and distribution channels for financial products in the country’s financial markets.
expects fewer NSX listings in 2017
predicts sustained regulation in robust M&A sector this year