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NZX nestles up to Nasdaq in latest international tie-up

Wednesday 12th September 2018

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NZX has signed a memorandum of understanding with US tech-heavy bourse operator Nasdaq, which will let top-tier American companies apply for a secondary listing locally. 

The deal is the latest in the New Zealand stock market operator's attempts to develop closer links with international peers as it seeks to promote local investment products and drive greater liquidity through its own platform.

The two exchanges have agreed to explore ways to promote dual listings, depository receipts, exchange traded funds and broader ways to develop market initiatives, NZX said in a statement. NZX has also approved Nasdaq as a recognised exchange for equity listings, meaning issuers on Nasdaq's top-tier Global Select Market can apply for a secondary listing in New Zealand under the foreign exempt issuer regime. 

The Wellington-based company wants the tie-up to help New Zealand firms accelerate their growth in the US without losing their connection to the domestic market, it said. NZX lost a high-profile listing at the start of this year when Wellington software developer Xero opted for a sole listing on Australia's ASX to increase its exposure to larger investors. 

"As NZX adopts an increasingly global outlook, today’s announcement is a significant endorsement of our strategy and complements relationships we have in place with the Singapore and Hong Kong exchanges," chair James Miller said. "We look forward to working with Nasdaq to generate opportunities for investors and companies in our respective markets."

NZX has used Nasdaq technology for its trading platform since 2012. NZX said the memorandum underscores its commitment to the technology provider. 

Nasdaq executives will travel to New Zealand to advance the memorandum, with details still to be announced. Both exchanges will analyse how to make it easier for New Zealand and US investors to access a broader range of products. 

NZX shares last traded at $1.07 and have slipped 3.2 percent so far this year. 

(BusinessDesk)

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