19 December 2003 Media Statement
Minister still considering Unlisted venture
Commerce Minister Lianne Dalziel is still considering whether to exercise the declaration power contained in the
Securities Markets Act 1988 in relation to the Unlisted securities trading facility
"As Minister of Commerce I have the power to declare that a market must either cease operating or become registered
under the Securities Markets Act, if I am satisfied that not doing so is likely to be detrimental to the integrity or
effectiveness of, or the confidence of investors in, securities markets in New Zealand," Lianne Dalziel said.
One method that the integrity, effectiveness and confidence criteria may be satisfied is through the operation of an
unregistered facility that is in substance, an ‘exchange’.
The Act is focused on maintaining the integrity, effectiveness and confidence principles by ensuring the proper
operation of all exchanges operating in the New Zealand securities market. This is accomplished through registration and
the accompanying scrutiny of the exchange's rules and operation, and with oversight from the Securities Commission.
"I have made it clear to the Unlisted operators, M-co, that should the venture operate sufficiently similarly to an
exchange, then I would regard the statutory criteria as having been met, which would allow me to invoke the declaration
“I have yet to make a decision regarding the Unlisted operation and I will monitor the situation carefully. The key test
requires me to consider the substance of the facility and then to ask whether there is detriment to the integrity or
effectiveness of, or the confidence of investors in, New Zealand's securities markets,” Lianne Dalziel said.