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FMA annual review finds NZX compliant

27 June 2019

The Financial Markets Authority has found that NZX complied with its market operator obligations during the 2018 calendar year.

The FMA has published its annual review of whether NZX met its statutory obligations as a licensed market operator.

It says NZX plays a vital role in helping to achieve fair, orderly and transparent financial markets in New Zealand to promote confident and informed participation by investors.

Last year, the FMA concluded that the NZX did not meet its obligation to have adequate arrangements to monitor the conduct of participants on, or in relation to its markets, due to a lack of market experience in its market surveillance function.

This year’s review acknowledges the positive changes made by the Market Surveillance team during the review period and the FMA supports the NZX’s approach to the continuous improvement of the team.

“We are satisfied from our observations and the feedback we’ve received that the capability of the market surveillance function has improved since last year. We also support the work the NZX is doing in preparing for market developments, including the increase in algorithmic trading," FMA Acting Co-director of Capital Markets Liam Mason says.

Last updated on the 16th September 2019