The Wellington broker will not appeal, saying the costs would be too great.

Sharebroker McDouall Stuart Securities says it wants to drop its status as a participant in trading and settlement on the NZ stock exchange (NZX) and instead has applied to become an NZX advisory firm, surrendering its right to trade.

The NZX accredits trading and advice firms, and advisers within those businesses.

An NZX advising firm cannot trade, but can advise clients, hold client assets, and underwrite and distribute new issues of securities.