NZX joint venture effort for ASX market role wound up

Sharemarket operator NZX is winding up its joint venture effort to offer a high-speed low-cost market for trading securities listed on the ASX.

NZX today said that it, along with the other shareholders of electronic communications network company AXE ECN - Citigroup, Macquarie, Merrill Lynch, Goldman Sachs and Commonwealth Bank - had decided to stop operations of AXE ECN as a trading entity and wind up the company.

"After a review and careful assessment of the market today, AXE does not see opportunities for its business model to generate sustainable economic returns."

AXE was established in 2006, and made its original application for an Australian Markets Licence in early 2007.

NZX wrote down the entire value of the investment in AXE ECN to zero in June 2009, saying it made the move given the ongoing reluctance of the Australian government to address the granting of a licence.

NZPA

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