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NZX to carry out review of own business

NZN 30/06/2017 Rebecca Howard

NZX will carry out an extensive review of its business with the results due in November.

And while shareholder Tony Falkenstein wasn't elected to the board, his observations will be considered as part of that review, chairman James Miller told Friday's annual general meeting.

Chief executive Mark Peterson - who took the helm on January 1 - told shareholders in Wellington that the review "will determine the shape of our business and influence the strategies we will adopt in growing the business and New Zealand's capital markets for the long-term".

The goal is to make sure "we have a business that's completely connected back to the core" and that any adjacent businesses can be leveraged back to that core, he said.

Mr Miller told the meeting that "everything is to be considered" as part of the review. The aim is to create a new five-year strategic plan with details to be announced in November.

Mr Miller said Mr Falkenstein had "sent a good rocket" at the board and made some "reasonably powerful observations" that have been heard.

His run at the board, however, didn't win enough support after the sitting directors said he wouldn't add the necessary skills or experience they are looking for.

Mr Falkenstein argued, however, the board needs more "diversity in thinking" and that is something he could offer.

Mr Falkenstein had long opposed the exchange's NXT market which aimed to target high-growth companies.

Earlier this week the NZX announced it was mulling a simplified structure that could combine the main NZSX board, the NZAX alternative market which is being phased out, and its replacement market for small caps, NXT.

"New Zealand is too small for three equity markets," Mr Peterson told the AGM.

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