GENERAL: NZX: NZX adjusts Annual Listing and Participant fees

25 Jun 2010 9:16 am

NZX 25/06/2010 GENERAL

REL: 0916 HRS NZX Limited

GENERAL: NZX: NZX adjusts Annual Listing and Participant fees

25 June 2010 - NZX will introduce some changes to Annual Listing and Participant fees on 1 July 2010 - the first such comprehensive change since 2006.

Advising, Trading and Clearing Participants NZX's Participant fee structure has been revised to reflect the complete restructure of the regulatory framework and rule book, infrastructure, markets and product offerings to match the changing face of Participants' business.

Trading fees for Participants will not be changing. In addition, NZX is trialling a new initiative to reward brokers for their own liquidity initiatives. An Aggregate Trading Fee Cap will be applied that will ensure additional trading volumes beyond average historical levels for each Participant do not attract additional fees, thereby encouraging liquidity growth on NZX Markets.

There are now three separate categories of Participant Firms (Advising, Trading and Clearing), replacing the previous single category, three different rule sets, and a split between cash and derivatives markets.

These changes reflect the expanding range of markets and infrastructure, and the distinct skills NZX Participant Firms are required to have to ensure they can offer the best service to companies and investors within each Participant category.

In addition to new Participant categories, the products and services to Participants are changing. They include new products such as margin, custody and batch settlement. The fee schedule also addresses the different clearing options (individual or general) and provides for separate treatment of trading and clearing, futures and options, and the cash market.

Issuers

Changes to NZX's Annual Listing fees, outside the Debt Market, are the only such adjustments in a five- year period.

In 2006, NZX committed to make no further change to Listing fees on the Main Board (NZSX) and Alternative Market (NZAX) until 2009. NZX chose not to change its Listing fees on any of its markets last year, in recognition of the actual and potential impacts of the Global Financial Crisis on New Zealand businesses. In the same year, the ASX raised its Listing fees by an average of 30%.

There will be no change to Initial or Secondary Listing fees for all Listed Issuers, or to Annual Listing fees for companies with a market capitalisation of less than $15 million listed on the NZX Alternative Market (NZAX).

Annual Listing fees on the Debt Market will increase 6.5%. On other markets the increase is 17.75%, which is on a par with inflation over the period, coupled with the impact of known one-off costs such as GST in 2010. The changes also reflect higher technology costs associated with running equity and debt markets (excluding the clearing house), the much higher cost of providing frontline regulatory services, and the increased cost imposed by external regulator requirements.

ENDS

For further information please contact: Merja Myllylahti Phone: 04-4962890 Mobile: 0275127832 End CA:00196514 For:NZX Type:GENERAL Time:2010-06-25:09:16:54

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