Sharechat Logo

NZX proposes changes to flagging price-sensitive announcements

Wednesday 13th July 2016

Text too small?

NZX wants to change the way it flags price-sensitive announcements which attract brief trading halts, putting the onus on issuers to identify what's material. 

The Wellington-based stock market operator is seeking more feedback on a proposal to change the way it uses administrative halts after initial submissions were divided on whether to drop the practice altogether. NZX now plans to rely on an issuer's assessment of whether an announcement is material, which would then be flagged to the market and attract a short trading halt, it said in a statement. 

NZX asked for submissions last August on a plan to stop flagging some announcements as price sensitive, which was supported by law firms Chapman Tripp and Russell McVeagh, as well as ANZ Bank New Zealand, and the Listed Companies Association. However, the New Zealand Shareholders Association and Securities Industry Association "indicated that investors do rely on the identification of price sensitive information" and dropping the practice "would have a disproportionate impact on retail investors," NZX said in its response paper. 

The local stock market operator is working with its Australian counterpart to try and align practices, but doesn't plan on waiting for the ASX to complete its own review.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

September 30th Morning Report
Devon Funds Morning Note - 29 September 2025
Synlait confirms Bright Dairy vote received
SML - FY25 Results, North Island Assets Sale & Annual Meeting
September 29th Morning Report
HLG Full Year Results for the period ending 1 August 2025
TWR - Tower announces partnership with Westpac NZ
PaySauce charts Australian launch; reiterates guidance
September 26th Morning Report
Fonterra reports continued strong performance in FY25