CMD Taskforce welcomes NZX discussion paper

Capital Market Development Taskforce welcomes NZX discussion paper

The Capital Market Development Taskforce today welcomed a Discussion Document prepared by the NZX which considers the allocation of regulatory functions in our capital markets.

Taskforce chair, Rob Cameron, says that the taskforce asked the NZX to prepare the document.

“Globally there is debate about the optimal scope and role of exchanges in regulation. We realise that this is a complex issue – NZX undertakes a wide range of different regulatory functions, some of which are inherent in being an exchange” Mr Cameron says. “The appropriate location of each of these functions needs to be assessed against a clear and rigorous set of principles.”

While the specific regulatory functions analysed in the Discussion Document are those currently undertaken by NZX, the principles set out in the document will allow the taskforce to apply this kind of analysis across the entirety of the regulatory landscape of our capital markets.

”There is no suggestion that there is any urgent need to make changes here – but clearly, the taskforce will need to consider the full set of regulatory arrangements across our capital markets“, says Mr Cameron. “We welcome the NZX paper as a very constructive contribution to the analysis and assessment of these issues.”

The document outlines some potential changes in the regulatory landscape as regards NZX’s functions, including potentially moving those to other regulators in some circumstances.

ENDS

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