NZX makes clearer distinction between regulatory, market functions

Thursday 28th June 2012

NZX, the stock market operator, is creating a new markets group and regulatory team to make a clearer distinction between the two roles, says new chief executive Tim Bennett.

As a result of the changes, NZX has created two new positions – a chief financial officer and a head of cash markets. It named Simon Smith as head of market services while current head of market supervision Robyn Dey will lead “a more tightly focused regulation team,” Bennett said.

“The time is right to build on the solid base that has been developed to ensure we’re structured, skilled and resourced to deliver for our markets in this new phase of development,” Bennett said.

Among developments are the “technology, operations and regulatory infrastructure for Fonterra’s Trading Amongst Farmers Market,” a wider range of trading and risk management tools and an expanded offering of agricultural information, the company said today.

The markets services group will be responsible for issuer services, market surveillance, clearing operations and risk functions, derivative operations, indices and data operations, it said.

The regulation team will be responsible for issuer regulation, compliance, enforcement and markets policy development.

The changes will “make the distinction between our regulatory and commercial roles more explicit,” Dey said. “This will remove any perception of conflict between those roles.”

Shares of NZX last traded at $1.37 and have climbed 39 percent this year amid optimism the Fonterra shareholders’ fund and sell-down and listing of state-owned companies will stoke activity on the exchange. The stock is rated a ‘hold’ based on three recommendations compiled by Reuters.

BusinessDesk.co.nz

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