New amendments to the NZAX listing rules

After an extensive consultation and review of the NZAX market, NZX has finalised its amendments to the NZAX listing rules. It is expected that the new rules will take effect from mid-March 2007.

The amendments to the NZAX listing rules were originally due to be implemented at the same time as the NZSX/NZDX listing rules in May last year (since they were to replicate the relevant NZSX listing rule changes). However, subsequently it was decided that any changes to the NZAX listing rules should be postponed until after a separate review of the NZAX market was completed. The review was completed in August 2006.

The review of the NZAX market in relation to the listing rules had two key findings:

• relatively few NZAX listed issuers had a clear understanding of the distinctions between the NZAX listing rules and the NZSX listing rules; and
  
• market participants did not consider any major rule changes to be necessary.

Consequently, NZX has proceeded with amending the rules to reflect the changes already made to the NZSX listing rules in May 2006 but, to assist market participants in distinguishing the difference between the two sets of rules, NZX has also reordered the NZAX Listing rules to follow the structure of the NZSX listing rules. A comparative chart of these changes is available on NZX's website at www.nzx.com.

NZX has also made two further changes to the NZAX Rules by omitting the existing NZAX provisions dealing with unit trusts and equity warrants.

Enquiries and information

For more information on any of the cases, articles and features in Commercial Quarterly, please email Diane Graham or call her on 64 9 916 8849.