NZX Dark & SMP: Notice of Rule and Procedure Amendments

NZX Limited
Level 1, NZX Centre
11 Cable Street
PO Box 2959
Wellington 6140
New Zealand
Tel +64 4 472 7599

www.nzx.com

19 February 2024
NZX Dark and Self-Match Prevention: Notice of Rule and Procedure Amendments

Last year, NZX consulted on changes to its regulatory policy to facilitate:

• the introduction of NZX Dark a voluntary anonymous unlit order book, and
• the enhancement of the self-match prevention tool through the introduction of booking
purposes only transaction (BPOT) functionality.
NZX has now obtained all necessary regulatory approvals and wishes to notify the market of
changes to certain rules and procedures to give effect to the outcomes of those reviews, which
will become effective on 20 March 2024.

NZX Dark
NZX gives notice of amendments to the NZX Participant Rules to support the introduction of
NZX Dark, a voluntary anonymous ‘unlit’ order book, on which trades will execute at the mid-
point of the current spread of Orders on NZX Central. The Trading Conduct Guidance Note will
also be amended to reflect the introduction of NZX Dark.

The amended NZX Participant Rules and Trading Conduct Guidance Note will become effective
on 20 March 2024.

NZX expects that NZX Dark will be made available for market participants in Q2 2024.

Self-Match Prevention Enhancements
NZX also gives notice of amendments to the NZX Participant Rules and Procedures, and NZX
Derivatives Market Rules and Procedures to support the introduction of BPOT functionality
within the optional self-match prevention tool. This tool supports Participants in complying with
their obligations in relation to Trades that do not result in a change in beneficial ownership. The
Self-Match Prevention Practice Note will also be amended to reflect the enhanced functionality.

The amended NZX Participant Rules and Procedures, NZX Derivatives Market Rules and
Procedures and Self-Match Prevention Practice Note will become effective on 20 March 2024.

NZX expects to make the new BPOT functionality available to market participants in Q4 2024.
Amendments
A mark-up of the amendments to the Rules and Procedures described above, along with the
amended Trading Conduct Guidance Note and Self-Match Prevention Practice Note are
available at the link below:

https://www.nzx.com/regulation/nzx-rules-guidance/upcoming-rules-guidance-changes
For further information, please contact:
Kristin Brandon
Head of Policy & Regulatory Affairs
T: 04 495 5054
M: 027 577 6994
E: kristin.brandon@nzx.com