NZX is pleased that the inaugural Oversight Review by the Financial Markets Authority (FMA) has found that NZX is meeting its obligations to run fair, orderly and transparent markets in New Zealand.
The review period covered 1 July 2010 to 31 December 2011.
NZX notes the conclusions of the FMA that, during the review period, three specific aspects of NZX’s regulatory activities required attention.
NZX has already taken action in two of the three areas - creating and resourcing a more explicit division between NZX’s market supervision and commercial legal functions - during the first half of 2012.
Work on the third area - formally documenting the existing decision-making steps in the enforcement process - is underway.
NZX CEO Tim Bennett said, “We recognise that effective frontline regulation is a core asset and, given the steps we’ve already taken, it’s clear we’re on the same page as the FMA on where some more focus was required.”
A key development during the review period was the establishment of NZX’s world class Clearing House.
“The Clearing House has significantly reduced systemic risk in our markets. It’s proof of our preparedness to invest in market quality, and we look forward to working with the FMA further on our common objective to further develop New Zealand’s capital markets,” said Tim Bennett.