Ann: GENERAL: NZX: Market activity remains strong in 2015

• Release Date: 18/12/15 08:40
• Summary: GENERAL: NZX: Market activity remains strong in 2015
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					NZX
18/12/2015 08:40
GENERAL
NOT PRICE SENSITIVE
REL: 0840 HRS NZX Limited

GENERAL: NZX: Market activity remains strong in 2015

New Zealand's capital markets have continued to demonstrate resilience in
2015, with strong growth in secondary capital raising and further increases
in trading activity. The year also included progression of a range of
important market development initiatives.

After a record 2014, IPO activity decreased in 2015. However, NZX's Debt
Market and Dairy Derivatives Market have both had record years. The listing
of 16 Smartshares Exchange Traded Funds (ETFs) and the launch of NXT, a
tailored and innovative market aimed at smaller, higher growth companies,
were two significant developments, which provide a foundation for future
growth in New Zealand's capital markets.

The S&P/NZX 50 Gross Index is up 9% since the beginning of this year to
6070.9, delivering strong returns to investors. Total equity market
capitalisation to Gross Domestic Product is approximately 44.3% compared to
42.1% at the end of 2014.

There has continued to be strong growth in subsequent capital raising events,
with in excess of 157 events generating more than $11.7 billion for existing
listed issuers in 2015, while IPO activity resulted in total new equity
capital listed of $1.4 billion this year.

NZX's Debt Market had an exceptional year with market capitalisation up by
approximately $5.8 billion, an increase of 44% compared to the end of 2014.
In November, the Local Government Funding Agency (LGFA) listed all six
existing series of its bonds on the NZDX, representing a total principal
amount of $5.56 billion. This listing provides materially greater depth to
the NZDX. A simplified process for existing issuers to issue further debt
under the Financial Markets Conduct Act (FMCA) is also driving growth in
listed debt, with an additional $1.7 billion of new debt issues on the NZDX
in addition to LGFA in 2015.

NZX Main Board listings in 2015 included Fliway Group in April, CBL Insurance
in October (the first listing under the new FMCA regime) and Senior Trust
Retirement Village Listed Fund in December. The Mercantile Investment Company
undertook a compliance listing in July and Pushpay Holdings migrated from the
NZAX to the Main Board in June. AFT Pharmaceuticals intends to list on the
Main Board on Tuesday 22 December, which will be the final listing for 2015.

In June, the NXT market launched with the listing of G3 Group. Snakk Media
was the first company to migrate from the NZAX market to NXT in November.

NZX's Dairy Derivatives Market continued its rapid growth trajectory in 2015,
with the number of contracts traded up 114.6% to 210,761 contracts, while
open interest (a key monitor of liquidity) was up 174.7% to 61,421 contracts
as at 15 December 2015.

In June, NZX welcomed OM Financial as a Trading & Advising Participant, and
the first New Zealand based General Clearing Participant for derivatives. In
September, US based Straits Financial LLC was accredited as a participant,
offering trading access to the NZX Dairy Derivatives Market from the US,
while INTL FCStone Financial Inc. was accredited as a participant in
November.

NZX CEO Tim Bennett commented: "New Zealand's capital markets have had a
strong run in the past three years thanks to a stable, growing economy and a
programme of significant market development. But we need to remain focussed
and work together across the industry to ensure listing continues to offer
meaningful benefits for companies and attractive investment opportunities for
KiwiSaver and investors."

"We were pleased with the reinvigoration of the listed debt market in 2015,
and the launch of 16 new Smartshares ETFs was also a significant addition to
the range of products listed on NZX's markets."

"Continued strong growth in dairy derivatives reflected the work completed
over many years by NZX's derivatives team to grow this market, the long
standing support from market participants who actively build liquidity, and a
growing appreciation in the global dairy market of the value of derivatives
as risk management tools."

"NZX wants to lead a genuine, renewed focus on New Zealand's future market
development and direction. We want to encourage a mindset change and inspire
industry commitment to our markets - this is a priority for NZX in 2016," Mr
Bennett commented.

In 2015, NZX Regulation continued to operate fair, orderly and transparent
markets. In May, NZX welcomed the Financial Markets Authority's (FMA) fourth
annual General Obligations Review, which assesses and reports on NZX's
compliance with its statutory obligations. The FMA concluded that during the
2014 review period NZX complied with all of its statutory obligations and did
not require NZX to take any specific actions following the review.

Other NZX developments in 2015

NZX's funds management business experienced steady growth following the
acquisition of leading New Zealand superannuation and passive funds manager
SuperLife completed in January. During 2015, Smartshares funds under
management (FUM), excluding SuperLife, grew by 17% to $481 million, driven by
the launch of 16 new ETFs, bringing the portfolio of ETFs offered by
Smartshares to 23. The new ETFs give investors the opportunity to invest
across all main asset classes, being cash, bonds, shares and property. As at
15 December 2015, total SuperLife FUM was $1,425 million.

In August, NZX acquired 100% of Apteryx, a provider of rich online
functionality that enables New Zealand investment advisors to efficiently
manage, trade and administer their clients' portfolios.

Also in August, the Electricity Authority reselected NZX for the provision of
NZX's existing four market operator service provider roles. NZX has entered
into eight year agreements with the Authority to continue service provision,
with an option for the Authority to extend these roles for a further three
years.

For further information please contact:
Kate McLaughlin
Corporate Communications
T: 09 309 3654
M: 027 533 4529
E: [email protected]

About NZX Limited
NZX builds and operates capital, risk and commodity markets and the
infrastructure required to support them. We provide high quality information,
data and tools to support business decision making. We aim to make a
meaningful difference to wealth creation for our shareholders and the
individuals, businesses and economies in which we operate. To learn more
about NZX, please visit: www.nzxgroup.com
End CA:00275356 For:NZX    Type:GENERAL    Time:2015-12-18 08:40:05