This note is not part of the order, but is intended to indicate its general effect.
This order, which comes into force on the day after its notification in the Gazette, approves the proposed conduct rules for the NZAX Market under section 36O of the Securities Markets Act 1988.
New Zealand Exchange Limited (NZX) has designed a new securities market called the NZAX Market, which is targeted at small and medium sized enterprises and non-standard entities.
On 10 September 2003, NZX provided the Minister of Commerce with the proposed conduct rules for the NZAX Market in accordance with section 36J of the Securities Markets Act 1988. On the date of this order, the conduct rules of the NZAX Market are available on NZX's website from the webpage: http://www.nzx.com/nzxmarket/NZAX/nzax_listing_rules.
Conduct rules include both the listing rules and the business rules of a securities exchange. Business rules are rules made by a securities exchange that govern the conduct of business on securities markets operated by the securities exchange and of persons authorised to undertake trading activities on those securities markets. Listing rules are the rules made by a securities exchange that relate to the governance of the persons who are parties to listing agreements with the securities exchange and to the entry into, and revocation of, those listing agreements.
After seeking the advice of the Securities Commission, the Minister of Commerce recommended, in accordance with section 36O of the Securities Markets Act 1988, that the proposed conduct rules of the NZAX Market be approved. This order approves those rules.