NZX, Nasdaq Agree to Explore Cross Market Access

The exchanges will explore opportunities to promote dual listings, depository receipts, ETFs and broader market development initiatives.

NZX (New Zealand Stock Exchange) has signed a memorandum of understanding (MoU) with Nasdaq, signifying a commitment to work towards achieving connectivity between the two markets.

“We are pleased to have extended our relationship with Nasdaq and are excited about the opportunities ahead,” said NZX chairman James Miller. “As NZX adopts an increasingly global outlook, today’s announcement is a significant endorsement of our strategy and complements relationships we have in place with the Singapore and Hong Kong exchanges.”

Under the agreement, NZX and Nasdaq will explore opportunities to promote dual listings, depository receipts, ETFs (exchange traded funds) and broader market development initiatives. The MoU enables the two exchanges to analyse the feasibility of allowing investors in New Zealand and the US access to each other’s investment products.

The MoU will also facilitate the expansion of New Zealand companies into the US, while still allowing them to maintain their connection to their home market.

NZX Regulation has additionally approved Nasdaq as a recognised stock exchange for equity listings. This enables top tier Nasdaq-listed issuers to apply for a secondary listing on the NZX under the foreign exempt issuer regime, under which issuers are exempt from most domestic listing rules given their compliance with the rules of their home exchange.

The NZX already uses trading and management systems developed and supplied by Nasdaq.

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