6 September 2004 - NZX Regulation Announcement

6 September 2004 - NZX Regulation Announcement

Announcement 1 in respect of matters relating to Access Brokerage Limited - Suspension of Market Participant under NZX Participant Rules

NZX Regulation (NZXR) declares Access Brokerage Limited (ACBW) a Defaulter under the NZX Participant Rules and advises that Access Brokerage Limited is suspended, effective immediately, as an NZX Firm. All trading and settlement rights and privileges associated with that designation are also suspended.

Every incomplete and/or partially incomplete contract with ACBW is deemed, under Rule 17.8.1 of the NZX Participant Rules, to be rescinded, closed and terminated effective immediately.

NZX will be withdrawing all ACBW orders from the FASTER Trading System, immediately after this announcement is released. No ACBW user will have access to the FASTER Trading System. NZX is currently working to cancel all trades from the FASTER Trading System. NZX expects that all orders will be withdrawn and all trades with ACBW will be cancelled by midday.

Under NZX Participant Rule 17.8.2 NZX has determined the market price for all Securities which are the subject of an incomplete or partially incomplete contract with ACBW (the NZX determined market price). The NZX determined market price is VWAP at close of trading on Friday 3 September 2004, for all Securities that traded on that day. With respect to Securities that did not trade on Friday 3 September 2004 the NZX determined market price is the last traded price of that Security on the last day that Security traded.

A separate announcement with the NZX determined market prices for each Security the subject of an incomplete contract with ACBW will follow.

Under NZX Participant Rule 17.8.3 ACBW is liable to the other Market Participants for any deficiency between the NZX determined market price for the Securities the subject of the incomplete contract and the price at which ACBW traded with that Market Participant. Similarly Market Participants who are a party to an incomplete contract with ACBW are obliged to account to ACBW for any surplus over the price traded with ACBW and the NZX determined market price of the Securities the subject of that incomplete contract.

All claims or surpluses should, in the first instance, be directed to ACBW.
NZXR is conducting an inquiry into the circumstances leading up to ACBW becoming a Defaulter.

For more information, please contact:

Bridgit Vivian
New Zealand Exchange Limited
04-496-2874
027-472-7599