The Unlisted Securities Exchange (USX) is a prescribed exempt financial product market that operates as a simple and cost-efficient share trading platform for small to medium-sized companies. The platform provides transparent pricing based on market demand and supply and an announcements facility to keep shareholders informed. Trading in securities quoted on USX can only be undertaken via registered brokers which arrange settlement of the trade.
Origins and Growth
USX was launched in December 2003 as an Unlisted Securities trading facility, using a trading platform developed by M-Co. Within a year, the platform had eight registered brokers trading securities in 21 issuers. Since then, the platform has grown significantly. As of December 31, 2022, the USX has facilitated over 20,700 trades for 379 million shares with a value of over $540 million. The total market capitalization had grown to approximately $2.8 billion, and issuers have raised over $472 million while listed on the market, including an initial public offering (IPO).
In 2015, USX was granted an exemption from subpart 7 of Part 5 of the Financial Markets Conduct Act 2013 (“the Act”) and certain conditions specified in the Exemption Notice. The exemption allows USX to operate as a prescribed exempt financial product market and continue to offer a cost-efficient trading platform for small to medium-sized companies.
Impact on the New Zealand Financial Markets
USX’s mission is to support the growth and development of New Zealand’s small to medium-sized companies by providing a simple and cost-effective way for issuers to provide market-based liquidity for their existing and new shareholders. The platform is especially valuable for companies that do not wish to, or are not ready to list on a licensed financial product such as the NZX and incur the compliance cost associated with such a listing.
USX’s Importance for Small to Medium-Sized Companies
USX is an important player in the New Zealand financial markets, providing an alternative market for companies wishing to provide liquidity for shareholders and transparent price discovery. The platform’s focus on small to medium-sized companies makes it an important part of the country’s entrepreneurial ecosystem, supporting the growth and development of businesses that are often overlooked by larger financial institutions.
The Essential Role of USX in New Zealand’s Financial Ecosystem
In conclusion, USX is an essential financial product market for small to medium-sized companies in New Zealand. With its cost-effective trading platform, it provides transparency, liquidity and helps keep shareholders informed. Its exemption from the Financial Markets Conduct Act 2013 allows it to continue to offer value in exchange to New Zealand’s entrepreneurial ecosystem. Unlock the potential of your business with USX, the premier unlisted securities exchange. Visit usx.co.nz to find out more.