NZX Publishes Strong Q3 Metrics Fuelled by Debt Market Growth

NZX has produced solid results in Q3 with most metrics exceeding 2015 figures boosted by new debt listings.

NZX has published its financial results for the third quarter reflecting an increase of 3.9 percent in its Q3 2016 revenues. The most significant contributors leading to this growth were higher fund management revenues and listing fees for new debt listings in what continues to be an exceptionally strong year for New Zealand’s listed debt market.

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Financial Metrics

NZX’s overall group revenue climbed to $13.84 million (NZ$19.34 million) during Q3 2016, beating a Q3 2015 figure of $13.33 million (NZ$18.62 million) while reflecting the aforementioned 3.9 percent year on year increase.

Revenue in NZX’s markets business was up 5.4 percent compared to Q3 2015 driven largely by the growth of NZX’s debt market, which highlighted a $2.16 billion listing of new debt during the quarter which reflected a 272 percent increase against Q3 2015.

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Trading volumes rose to 425,950 trades reflecting a 4.8 percent year-on-year increase from Q3 2015 while Dairy Derivatives revenues in Q3 2016 were the second highest quarter recorded to date, with Q3 2015 being the all-time highest quarter.

NZX Wealth Technologies made strong progress during the quarter announcing two major new clients, Craigs Investment Partners and Macquarie Equities New Zealand. Both are expected to be transitioned onto the NZX Wealth Technologies platform in the first half of 2017.

The only downside in today’s metrics is NZX’s Agri business which continues to feel the effects of reduced confidence in the New Zealand dairy sector as a result of a decline in dairy commodity prices in 2015 and the first half of 2016.

Regulation Commentary

NZX also published its Q3 2016 regulation metrics today. NZX Regulation commenced 21 investigations into issuers during the quarter, down from 35 in Q3 2015. In addition, 15 investigations were completed in relation to participants, compared to 18 in Q3 2015.

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