Ann: GENERAL: NZX: NZX to appoint First NZ Capital as NXT market maker

• Release Date: 04/03/15 08:44
• Summary: GENERAL: NZX: NZX to appoint First NZ Capital as NXT market maker
• Price Sensitive: No
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					NZX
04/03/2015 08:44
GENERAL
NOT PRICE SENSITIVE
REL: 0844 HRS NZX Limited

GENERAL: NZX: NZX to appoint First NZ Capital as NXT market maker

NZX is pleased to announce it has reached an agreement in principle with
First NZ Capital to become the foundation market maker for NXT, NZX's new
market designed for small high growth businesses.

The market maker role will include:

o Displaying bid and offer quotes for a guaranteed number of shares
o Displaying bid and offer quotes for a minimum number of trading hours

o Maintaining a pre-arranged spread between the bid and offer quotes

In order for NXT to be successful, there needs to be a sufficient level of
liquidity to aid price discovery, and encourage investor confidence in NXT
listed companies. In a liquid market, investors can buy and sell shares
easily, and there is enough trading activity for the daily market price to
accurately reflect the value of the underlying business.

Market markers are often recognised for improving market quality in general,
reducing the size of bid/offer spreads and improving market depth and
liquidity. Designated market makers are a feature of many overseas markets.

The intended appointment of First NZ Capital as designated NXT market maker
follows NZX's announcement in December regarding Edison Investment Research's
appointment to the role of default NXT research provider. The key functions
of these two appointments are to promote liquidity, encourage companies
listed on NXT to be fairly valued, and to improve the frequency and quality
of information available to all investors.

James Lee, First NZ Capital's Managing Director-Head of Securities commented:
"NXT is an exciting new development in New Zealand's capital markets, and we
are proud to extend our market making of existing instruments to incorporate
the role of foundation market maker for NXT."

NZX Head of Markets, Aaron Jenkins commented "The intention to appoint First
NZ Capital, one of New Zealand's leading finance houses as the designated NXT
market maker is the final, critical element prior to the trading launch for
NXT. We have been very pleased with the level of interest from companies who
are considering NXT listing, which further reinforces NXT's importance in
supporting the aspirations and growth of New Zealand's small to medium sized
business sector."

First NZ Capital's appointment and market making arrangements remains subject
to formal approval by NZX Regulation, and review by the Financial Markets
Authority.

Key features of the market

o A market aimed at small to mid-sized businesses with an expected
market cap of $10-100 million
o Reduced costs and complexity, both during the listing process and
ongoing
o More support for companies listed on the market
o A streamlined regulatory environment, with a set of simpler,
template-based rules and procedures
o The presence of market making and research to aid liquidity
o Better information on companies for investors through quarterly
updates, research coverage and key operating milestones

For further information please contact:
Kate McLaughlin
Corporate Communications
M: 027 533 4529
T: 09 309 3654
E: [email protected]
End CA:00261442 For:NZX    Type:GENERAL    Time:2015-03-04 08:44:37