No breach of rules: exchange

extensive engagement with Goldman Sachs.

“NZX Regulation ultimately concluded, based on the totality of evidence, that the trading did not constitute a breach of Participant Rule 10.2.1 ( the relevant rule prohibiting market manipulation), and accordingly that trading was not referred to the NZ Markets Disciplinary Tribunal.”

Amelsfort said orderly markets were a priority for the NZX and this year it had consulted extensively with industry on amendments to its participant rules as well as trading conduct guidance: “NZX will shortly release a consultation paper on imposing voicerecording requirements for trading participants.”

The NZ Markets Disciplinary Tribunal was responsible for dealing with proceedings brought by NZX Regulation in relation to breaches of NZX’s market rules, rather than matters which fell under statute which the FMA was already able to action via the courts.

“NZX remains committed to working collaboratively with the FMA in pursuit of our mutual strategic objectives relating to orderly markets, and to ensuring clarity of market expectations on good trading conduct practices that underpin fair, orderly and transparent markets.”

An FMA spokesman said the fact the NZX had not made a referral in this instance, “while disappointing, is not a sign of a systemic issue”.