NZX abandons troubled Australian venture
The stock exchange is winding up its troubled attempt to set up a clearing house in the Australian market.
The stock exchange is winding up its troubled attempt to set up a clearing house in the Australian market.
In a statement released this morning, NZX said shareholders in the electronic communications network company AXE ECN had elected to cease operations and wind up the company.
“After a review and careful assessment of the market today, AXE does not see opportunities for its business model to generate sustainable economic returns and shareholders have therefore agreed to cease operations of the legal entity,” the statement said.
NZX said the wind up would result in a “non material payment made to NZX by the other shareholders''.
Established in 2006, AXE aimed to compete with the ASX by providing a low cost clearing house for large trades in the Australian market. NZX partnered with Citigroup, Macquarie, Merrill Lynch, Goldman Sachs and Commonwealth Bank on the project.
Troubled from the outset, the necessary licenses were never gained and NZX wrote off its AXE stake in mid 2009.
NBR staff
Fri, 14 Jan 2011
Fri, 14 Jan 2011
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NZX abandons troubled Australian venture
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