NZX Revenue & Shareholder Metrics – Q3 2020

NZX Limited - Quarterly Operating Revenue
Q3 2020
Q3 Operating RevenueYTD Operating Revenue
Q3 2020Q3 2019
Change YOY
YTD 2020YTD 2019
Change YOY
NZ $000NZ $000NZ $000NZ $000
Annual listing fees2,6852,739-2.0%8,1567,8873.4%
Primary listing fees262622-57.9%470992-52.6%
Secondary issuance fees8521,141-25.3%3,0472,68913.3%
Other issuer services1701578.3%52138037.1%
Consulting & development revenue41330635.0%752805-6.6%
Contractual revenue2,1112,198-4.0%6,6386,5261.7%
Total Issuer Relationships revenue6,4937,163-9.4%19,58419,2791.6%
Participant services1,1531,1193.0%3,4602,97116.5%
Securities trading¹1,2951,03025.7%4,1792,79349.6%
Securities clearing¹2,1191,64428.9%6,5854,35751.1%
Dairy derivatives270390-30.8%1,0611,133-6.4%
Total Secondary Markets revenue4,8374,18315.6%15,28511,25435.8%
¹ Securities trading and clearing revenue for Q3 2020 and YTD 2020 significantly increased due to higher trading and clearing values - plus the impact of the fee rate changes effective from 1
July 2019.
Royalties from terminal1,7191,51113.8%5,0794,6878.4%
Subscriptions and licenses1,09092917.3%3,1832,73416.4%
Indicies238119100.0%72854134.6%
Dairy data subscriptions151178-15.2%466529-11.9%
Audit and back-dated licenses3307-99.0%779804-3.1%
Other revenue²(-) (-) (-) (-) 99-100.0%
Total Data & Insights revenue3,2013,0445.2%10,2359,3949.0%
² Other revenue relates to FundSource which was sold, effective 21 June 2019.
Funds Management revenue³3,3443,3350.3%10,1519,6405.3%
³ Funds management revenue increase was partially offset by a historic pricing provision.
Wealth Technologies revenue54442926.8%1,3931,2679.9%
Corporate revenue⁴11222-95.0%200407-50.9%
⁴ Corporate revenue includes sponsorship, NZX website advertising and sublease revenues.
Total Revenue18,43018,3760.3%56,84851,24110.9%

NZX Limited - Quarterly Shareholder Metrics
Q3 2020Q3 2019
September 2020Q3 2020
These shareholder metrics represent the key operations of NZX's business.
Markets
NZX Listed Issuers30.09.20Change YoYCapital RaisingQ3 2020Change YoY
Total equity securities128-3.8%Total capital raisings$4,442 m-13.7%
Total fund securities496.5%
Total retail debt securities137-0.7%New Capital Listed
Total wholesale debt securities860.0%Total capital listed by all issuers$2,173 m-19.8%
Total other securities40.0%
Total listed securities3260.0%Equity listings$54 m-90.8%
Fund listings$44 m38.5%
Total NZX Main Board equity issuers126-3.8%Retail Debt listings$1,575 m-24.5%
Total NZX Main Board fund issuers496.5%Wholesale debt listings$500 m-
Total NZX Debt Market retail debt issuers48-4.0%
Total NZX Debt Market wholesale debt issuers20.0%Secondary Capital Raisings
Total other issuers433.3%Total capital raised by all issuers$2,269 m-7.1%
Total unique issuers201-1.5%
Total equity raised - NZ issuers$353 m-10.8%
Total equity raised - dual or foreign issuer$432 m-50.1%
Market Capitalisation30.09.20Change YoY% of GDP
Total funds raised - NZ issuers$242 m4.5%
Total market capitalisation$208,089 m7.3%66.9%Total funds raised - dual foreign issuer$66 m-32.7%
Total debt raised$1,176 m557.3%
All equity$163,458 m5.6%52.6%Total wholesale debt raised--100.0%
All funds$5,353 m16.3%1.7%
All other$19 m493.0%0.0%Total number of secondary capital raising events82122.7%
Total equity$168,830 m5.9%54.3%Equity issuers - capital raised < $10m14727.8%
Equity issuers - capital raised ≥ $10m < $100m928.6%
Retail Debt$32,898 m3.5%10.6%Equity issuers - capital raised ≥ $100m1-66.7%
Green bonds$2,100 m162.5%0.7%Fund issuers - capital raised65321.2%
Wholesale debt$4,261 m105.3%1.4%Retail debt issuers - capital raised11266.7%
Total NZX Debt Market$39,259 m13.3%12.6%Wholesale debt issuers - capital raised--100.0%
Cash MarketQ3 2020Change YoYDerivativesQ3 2020Change YoY
Total value traded$12,602 m33.4%Futures - total lots traded63,967-31.1%
Daily average value traded$191 m33.4%Options - total lots traded16,996-11.1%
On-market value traded$7,402 m43.8%Total derivatives lots traded80,963-27.7%
% of value on-market58.7%7.8%Total derivatives lot traded - YTD286,589-4.3%
Total trades3,084,757120.6%Open interest at period end73,44125.6%
Daily average trades46,739120.6%Notional value traded ($USD)$331 m-28.3%
Options to futures ratio26.6%29.1%
Total Equity TransactionsBlock trade %0.0%-100.0%
Total trades3,076,357121.1%
Value traded $12,242 m34.5%
Derivatives Total Lots Traded 2018 / 2019 / 2020
% of value on-market59.7%7.1%
Average on-market trade size$2,392 m-35.0%
Total Debt Transactions
Total trades8,40014.7%
Value traded $360 m4.4%
Cumulative Numbers - YTD
Number of trades8,979,211175.0%
Total value traded$40,532 m45.9%
% of value on-market61.3%16.6%

NZX Indices Performance30.09.20Change YoYClearing House / DepositoryQ3 2020Change YoY
S&P/NZX50 Index (Gross)11,7477.5%Gross value of cleared trades over period$12,628 m33.2%
S&P/NZX 50 Index (Capital)4,9374.8%Collateral held at period end$67 m34.8%
S&P/NZX 50 Portfolio Index7,0092.8%Depository transactions over period23,49055.6%
S&P/NZX Primary Sector Index15,522-2.0%Assets under custody in depository at period end$4,065 m279.0%
S&P/NZX NZ Fixed Interest Composite Index1315.1%Value of stock lent over period *--100.0%
S&P/NZX A-Grade Bond Index6,0345.3%
* Due to changes in custodian, NZX Clearing ceased offering stock lending to Participants in
March 2020. Smartshares is completing its own bilateral lending programme.
Direct Data Products30.09.20Change YoYDirect Data Products30.09.20Change YoY
Proprietary security subscription products*3223.5%Dairy data subscriptions*461-10.5%
- products ≥ $3,000 p.a.*1110.0%- products ≥ $1,500 p.a.*103-16.3%
- products < $3,000 p.a.*2115.5%- products < $1,500 p.a.*358-8.7%
* Proprietary security subscription products have been restated (including comparatives) to
exclude subscriptions relating to the FundSource business which was sold during June 2019 and
to consolidate multi-user licences to reflect the parent subscription only.
* Dairy Data Subscriptions have been restated (including comparatives) to consolidate multi-
user licences to reflect the parent subscription only.
Wholesale Data30.09.20Change YoYEnergy Contracts30.09.20Change YoY
Terminal numbers - professional6,2424.8%Operating / Technology contracts170.0%
Terminal numbers - retail2,68677.4%- contracts ≥ $500k p.a.40.0%
Licences - value ≥ $20k p.a.4617.9%- contracts < $500k p.a.130.0%
Licences - value < $20k p.a.80-2.4%
Fund Management
30.09.20Change YoY
Total external funds under management$4,443 m20.4%
Scheme FUM30.09.20Change YoY
SuperLife Kiwisaver$1,085 m10.5%
SuperLife Workplace Savings$1,248 m-1.5%
Smartshares Exchange Traded Funds - External$1,570 m29.2%
Smartshares Exchange Traded Funds - Total (external and internal)$3,836 m18.2%
* Metrics reported by NZX for Smartshares and Superlife have changed as Smartshares has started to support institutional investors with both managed funds and
separately managed portfolios.
Other Metrics30.09.20Change YoY
Units on issue1,416 m21.3%
Value of stock lent over period*$941 m-
* Due to changes in custodian, Smartshares ceased offering securities through the NZX Clearing centralised clearing book in March 2020 and is now lending exclusively
through its own stock lending programme.
Wealth Technologies
30.09.20Change YoY
Funds under administration$3,282 m48.7%
Notes
1. All figures are measured at the end of the last trading day of each month unless otherwise stated.
Change refers to the change since the same period last year unless otherwise stated.

2. Equity market capitalisation includes all securities quoted on the NZX Main Board (NZSX).
With an overseas domiciled Issuer, the market capitalisation represents the amount that is held in New Zealand.

3. Market capitalisation for the NZX Debt Market is the total nominal (face) value of all listed securities, excluding New Zealand Government stock.

4. Funds include exchange traded funds, managed funds, listed investment companies and trusts.

5. "Other" securities include options, warrants and options quoted on the NZX Main Board (NZSX).

6. Please note these operational statistics are based on NZX’s internal records, which are unaudited.
Differences may arise between this data and that disclosed in subsequent audited financial statements.
Differences may also arise between this data and the previously reported data due to rounding and classification restatements.

To enquire about information listed on this sheet, or to find out more about NZX products or services, please email: data@nzx.com

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NZX Limited – Quarterly Regulation Metrics
Q3 2020
These Regulation Metrics represent the key features of NZX’s activities in regulating its Markets. The metrics focus
on key activities so as to provide transparency and a means of comparison across periods
.

ISSUERS – KEY METRICS

Q3 2019 Q3 2020
Total announcements released 4,885 5,035
Trading halts at request of Issuer or NZXR¹ 12 15
Documents approved and waivers² granted to Issuers 31 20
Complaints received concerning Issuers 6 0
Price enquiries concerning Issuers 2 2
Investigations³ begun in relation to Issuers 53 10
Investigations ongoing at the end of the quarter/period in relation to Issuers 13 7

PARTICIPANTS – KEY METRICS

Waivers², Exemptions and Rulings granted to Participants 1 1
Inspections commenced
6 5
Complaints received concerning Participants 0 0
Investigations³ begun in relation to Participants 12 9
Investigations ongoing at the end of the quarter/period in relation to Participants 11 11

NZX RULES AND POLICY

Disclosure Requirements for Profile documents

During July 2020, NZX Policy consulted on proposed amendments to the Listing Rules to adjust the disclosure
settings for direct listings to:

• remove the requirement for prospective financial information to be included in a Profile, and
• introduce a framework for NZX Foreign Exempt Issuer applicants, to allow NZXR to prescribe the nature
and content of Profiles for such applicants, through templates designed on a jurisdictional basis.

The amendments to the Listing Rules were subsequently approved by the FMA and will take effect from Tuesday 3
November 2020. The market announcement with an attached marked-up copy of the Listing Rule amendments can
be found here.

NZX will also be releasing updates to the relevant Practice Notes and Guidance Notes to provide market guidance
and support these amendments.

Continuous Disclosure Guidance Note

During August 2020, NZX consulted on amendments to the Continuous Disclosure Guidance Note. The
amendments are designed to provide further guidance to Issuers on how to manage disclosure obligations in the
event that they experience a performance deviation from market expectations.

The amendments clarify that in determining whether a performance deviation is Material Information for the
purposes of the Listing Rules, Issuers should consider both the nature of market expectations, and the nature,
extent and certainty of the deviation, in accordance with the guidance provided in the Guidance Note.

NZX has now finalised the revisions to sections 3.4 and 3.5 of the guidance note and an updated version of NZX’s
Continuous Disclosure Guidance Note is available here.

Trading Conduct Guidance Note - Indications of Interest

During August, NZX Policy consulted on proposed amendments to section 4.2 of the Trading Conduct Guidance
Note in relation to conduct expectations in respect of advertising indications of interest, including that Participants
adopt the AFME/IA framework. We would like to thank those who submitted on the proposed amendments, which
are currently being considered.

Listing Rules ‘Hygiene Review’ Q4 2020

NZX Policy plans to commence the ‘Hygiene Review’ of the Listing Rules in Q4 2020. The objective of this review
is to resolve minor and technical issues that were an unintended consequence of the holistic Listing Rule review.
We hope to formally consult on the proposed changes to the Listing Rules in late Q4 2020, in the interim please
submit any proposed improvements to us, at policy@nzx.com.


NOTES
The metrics are derived from NZX’s internal records.
1. Trading halts imposed routinely, for example on release of price-sensitive information or in the context of
corporate actions are excluded.
2. Details of waivers granted by NZX are released to the Market, and available on https://nzx.com/ and through i-
Search except where the decisions are confidential.
3. NZX will commence an investigation when it identifies a possible breach of rules.

To enquire about any information on this sheet, please email regulation@nzx.com