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USX Exemption Conditions Affirmed

Friday 9th March 2018

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The Unlisted Securities Exchange (USX) is pleased to retain its exemption conditions following a review by the Ministry of Business Innovation and Employment, (MBIE).

One of the conditions of the exemption as set out in the Financial Markets Conduct (Unlisted) Market Regulations 2015 was that the conditions of USX’s exemption be subject to review two years after the granting of the exemption.

USX had sought relief from the condition that issuers be able to enter into a listing agreement with USX without providing audited financial statements, provided that the issuer undertakes to provide such audited financial statements by the end of the financial year. The Minister of Commerce and Consumer Affairs Hon Kris Faafoi determined not to provide such relief as MBIE’s advice was that the current condition provides investors with important information, recognising that other disclosure requirements (like continuous disclosure) do not apply.

MBIE will continue to monitor USX through the annual reports provided by USX to the Minister to assess whether or not changes to the conditions of the exemption need to be contemplated.

Bevan Wallace, Chair of Efficient Market Services Limited, operator of USX, advised that he was pleased that after the extensive review the Minister had determined that that no additional conditions were considered necessary. The relief from the condition that all issuers provide audited accounts was sought to allow issuers that had filed Product Disclosure Statements or met crowdfunding disclosure requirements be able to list immediately. While disappointed that the Minister determined not to grant such relief Mr Wallace noted that the absence of such relief generally only resulted in the deferral of a listing.

Mr Wallace observed that the review endorsed business as usual and affirmed USX’s position in New Zealand’s capital market landscape.


The Unlisted Securities Exchange is not a licensed financial product market. USX is a financial product market that operates pursuant to an exemption from subpart 7 of Part 5 of the Financial Markets Conduct Act 2013 (the Act). USX is currently used by 14 Issuers for quotation of 15 securities with a combined market capitalization of $2.7b. In the year to 31 January 2018 Unlisted facilitated 1,023 trades representing 15.6m shares with a combined value of $39.75m.

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