No complaints over NZAX fee hike, FMA says

Tuesday 23rd June 2015

The Financial Markets Authority hasn't received any complaints over NZX's plans to hike fees for firms on its small-cap NZ Alternative Exchange (NZAX), which are scheduled to come into effect next month.

On July 1, the stock market operator plans to lift the annual fees paid by NZAX-listed companies worth less than $15 million to $25,000 from $5,375, a hike that's attracted ire from the small-cap companies listed on the exchange. While several NZAX-listed firms have criticised the increase in the media, none have officially complained to the market watchdog.

FMA spokesman Andrew Park said the regulator hasn't received any complaints about the looming fee increase, and has no qualms of its own about the stock market operator doing so.

"Fees are a commercial decision for NZX and do not come under the obligation to operate fair, orderly and transparent markets," he said in an emailed statement.

NZX is the country's only licensed market operator, and has a legal obligation to have adequate arrangements in place to handle conflicts between its commercial interests and ensuring the market operates in a fair, orderly and transparent manner.

The stock market operator's capital markets unit is its biggest revenue generator, contributing $37.2 million to annual sales in calendar 2014, a 6.2 percent gain from a year earlier, on growth in securities information, listings and participant services.

The company launched a new market last week which will cater to small- and medium-sized businesses valued between $10 million and $100 million. The NXT market has a less onerous obligation regime, though carries a similar price tag as the main board with a listing fee of $30,000, covering the cost of market maker First NZ Capital and evaluations from Edison Research.

NZX shares were unchanged at $1.07, and have dropped 8.6 percent this year.

BusinessDesk.co.nz

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