Nzx 20 Minute Delay

[Wiremu]

The New Zealand Shareholders Association has written to the Securities Commission complaining about the 20 minute delay before releases are made available to the general investing public.

One of the key criteria within the continuous disclosure requirements of the Securities Markets Act (search for the Act at www.legislation.govt.nz) is section 19 A (2) (e):

avoiding unfair advantages resulting from inappropriate disclosure of information to some, but not all, investors:

Is that, or is that not, the 20 minute selective embargo imposed by the NZX?

The Securities Commission has allowed this to exist by stating that one means of meeting this requirement is to distribute the information to brokers, using brokers as a proxy for the general investing public.

On the subject of insider trading the Securities Commission has also stated that once information is released to the market a reasonable period of time must pass before that information can be traded on.

I am not a member of the New Zealand Shareholders Association, but have been concerned about the 20 minute selective embargo for some time. I have written a letter supporting the New Zealand Shareholders Association's to the Securities Commission pointing out that the 20 minutes delay is in breach of the Securities Markets Act which does not allow for any exceptions; and that the Securities Commission cannot rely on the brokers as being a proxy for the general investing public. This is for two reasons, first many brokers have house accounts which they could trade before their clients are aware of the information (and with dual listed companies they are active arbitragers), and second many of the investing public do not use brokers for advice and trade using discount or on-line services where they never talk to a broker.

I have also raised the interesting possibility of someone bringing an insider trading action against a party who uses information released to the market, but not made available to the general investing public for 20 minutes, and then a further 20 minutes in line with the Securities Commission's own advice.

If you too object to the NZX 20 minute selective embargo please write or email the Securities Commission. If enough get behind this push for change we can achieve a result. Weight of numbers will mean that the Securities Commission cannot ignore this matter.

The Commission's email address is seccom@seccom.govt.nz

Their mailing address is PO Box 1179, Wellington 6011.

[Unicorn]

I do not think I lose much through the 20 minute delay. More often than not I can just go to the ASX to pick up an announcement if I want it immediately.

But I think I gain a couple of useful things through the 20 minute delay.
1. It is a constant reminder of the contempt that the NZX has for retail investors.
2. It shows the calibre of the Securities Commission in allowing it.

[Wiremu]

Unicorn,

The ASX is only of use with dual listed companies.

I must admit I hadn't thought of your two useful points in that light.

[Lizard]

Surely the 20 minute delay is much less damaging than the 20 day delay...
... by the time you, as a shareholder, are able to obtain a copy of the printed annual report with complete cashflow and balance sheet, any interested institutions or large shareholders will have received a copy of the Appendix 1. In fact, if you are prepared to pay the NZX about $5000/yr (at last check), you too can access this data in real time...

... then again, I would have to say that despite "real time" announcements on the ASX I would guess 3 out of 4 of my ASX shares will move more in advance of a bad announcement than they do when it is actually made. Nothing gained from real time...

[Wiremu]

Lizard,

The annual report and financial statements should all be available from a company's website when they release them to the stock exchange, so that is not a problem as I see it. Others of course may see that differently.

With the change to the Companies Act the release of the annual report is now when it is made available electronically - and printed copies are a secondary matter for those who require a copy.

[Lizard]

Wiremu, the final dates for "release of results" and "report available" are still one month apart as far as I am aware. When full year or half year results are announced, NZX still receives financial statements (P&L, Balance Sheet, Cashflow) in the form of an Appendix 1, along with the viewable market release. NZX Data provides subscription services of various kinds which I believe allow subscribers to access these. In addition, companies will often distribute these statements directly to interested brokerages and journalists. Occasionally they will post them to their web-site (SKL does a good job - attaching the pdf's of statements and presentations to their market release on their web-site), but more often they don't. For instance, Briscoe Group would have provided statements to the NZX with their 5 September result, but their web-site does not yet have the HY report available on it nearly one month later (or even the HY market release).

There is a big difference in some cases between reading the "market release" profit figures released by a company and seeing their underlying cashflow and balance sheet. This is often particularly true for recognising companies in financial distress - companies which are most like to dissemble in their releases.

[Lizard]

Further to the above - here is the link to what SKL made available (http://companyresearch.nzx.com/corporate/SKL/newsopen_dyn.php?menu=SKL&header=n&a=169691:SKL) on their web-site showing what information is actually out there at the time of their initial results release on 4 September. If you click on the link, you will see it is actually a link to an NZX domain. Download the attachments by clicking the 5 "view attachment" buttons to see how much information was actually available. Then compare to the NZX release (http://www.nzx.com/markets/NZSX/SKL/announcements/4680989) made available to the market.

Sure, SKL put the information on their own web-site within a day or so, hence in this particular case it was accessible, but this was entirely voluntary on their part and is matched by too few other NZX listed companies.

[Hoop]

Wiremu.

Not sure but it may cost the web page provider you look at more to obtain streaming live price data.
I personally think it is a little unfair for a casual observer who has no intention to reward that provider to demand a live service.

Usually internet brokerage sites require some intent from the observer before they offer this service. I deal with Direct Brokering and internet trade with them...I'm not sure but I think all you need to do is to register (free) to that site and once approved, log in and I think the Quote prices and announcements are live. Depth info is pricey so to get that you have be active. (a trade within 3 months).

May pay to check..just post something on the ST Direct brokering thread (http://www.sharetrader.co.nz/showthread.php?t=6020&page=4) and JulianG may respond as he may not read this thread.

Disc: This is not meant to be an advert as there is a Direct brokering thread on ST and I can't see any other brokering threads.

[Billy Boy]

I must agree with Wiremu to a point.
EG
If I own shares in a company then I am a part owner, and as such I
should be allowed access to any news as it becomes available.

In this electronic world I should be E-mail immediately an announcement
is made (being a shareholder). Why should I have to pay the NZX ?

If I dont own shares then the 20min delay is acceptable.
BB

[Hoop]

I must agree with Wiremu to a point.
EG
If I own shares in a company then I am a part owner, and as such I
should be allowed access to any news as it becomes available.

In this electronic world I should be E-mail immediately an announcement
is made (being a shareholder). Why should I have to pay the NZX ?

If I dont own shares then the 20min delay is acceptable.
BB

BB
Leigh Halsam from Computershare emails me when any PRC announcements occur. Can't recall what I did ... Must have ticked a box somewhere on a form or webpage.

BB ....If you haven't received those Emails go to the PRC website you can subscribe here (http://www.pike.co.nz/shareholder-section/electronic-notices-reports) to get electronic reports

Have a look at Computershare to update your details (http://www-au.computershare.com/investor/contactus/default.asp?bhjs=1&fla=1&state=EmailForm&Section=investor&cc=NZ&lang=en) (need CSN number and FIN password handy) or just email them with a query

Most companies are leaning towards electronic reporting so no need to pay anyone nowadays.

[Billy Boy]

Hoop tks
But do they come through late or on the Dot

[Hoop]

Hoop tks
But do they come through late or on the Dot

Hmm.. good point...I'll check

Late!! :(:mad::mad:

So much for my above postings:p .. worth bugger all it seems

Example:- 30/9/2008 PRC announcement issued from Direct Brokering at 12.52pm
Arrived in my email box at 4.07pm:(

Here's its path to get to my email box times (again highlighted in red).
Note...Ihug (Vodafone) clock is at least 25 minutes faster than mine..interesting?

Somewhere someone is terribly inefficient within the bucket brigade.

In this instance Computershare sends the email 10minutes after announcement received by Direct Brokering.

Received: from melyxmsw2.computershare.com.au ([203.49.232.150])
by mx.mailfilter6.ihug.co.nz with ESMTP; 30 Sep 2008 16:32:02 +1300
Received: from meldmail2.oceania.cshare.net (unverified) by
melyxmsw2.computershare.com.au (Clearswift SMTPRS 5.2.9) with ESMTP
id <T89bfc2bc11ac1c2f94d30@melyxmsw2.computershare.com .au>; Tue, 30
Sep 2008 13:02:09 +1000
Received: from CSOMAIL1.oceania.cshare.net ([172.28.25.140]) by
meldmail2.oceania.cshare.net with Microsoft SMTPSVC(6.0.3790.3959);
Tue, 30 Sep 2008 13:07:34 +1000BB



I must confess this electronic stuff is less than desirable if you rely in it for quick communication.....sad really:(.

[trackers]

Hmm.. good point...I'll check

Late!! :(:mad::mad:

So much for my above postings:p .. worth bugger all it seems

Example:- 30/9/2008 PRC announcement issued from Direct Brokering at 12.52pm
Arrived in my email box at 4.07pm:(

Here's its path to get to my email box times (again highlighted in red).
Note...Ihug (Vodafone) clock is at least 25 minutes faster than mine..interesting?

Somewhere someone is terribly inefficient within the bucket brigade.

In this instance Computershare sends the email 10minutes after announcement received by Direct Brokering.

Received: from melyxmsw2.computershare.com.au ([203.49.232.150])
by mx.mailfilter6.ihug.co.nz with ESMTP; 30 Sep 2008 16:32:02 +1300
Received: from meldmail2.oceania.cshare.net (unverified) by
melyxmsw2.computershare.com.au (Clearswift SMTPRS 5.2.9) with ESMTP
id <T89bfc2bc11ac1c2f94d30@melyxmsw2.computershare.com .au>; Tue, 30
Sep 2008 13:02:09 +1000
Received: from CSOMAIL1.oceania.cshare.net ([172.28.25.140]) by
meldmail2.oceania.cshare.net with Microsoft SMTPSVC(6.0.3790.3959);
Tue, 30 Sep 2008 13:07:34 +1000BB



I must confess this electronic stuff is less than desirable if you rely in it for quick communication.....sad really:(.

You could email IHUG and ask them to put computershare on their white list? :)

[Wiremu]

Lizard,

I thought that the release of the full Appendix 1 and preliminary result information was mandatory - have a look at PRC mentioned by Hoop.

Annual reports have become just a glossed up version of the earlier information.

Although everyone has opinions on other matters can we focus on the one issue - do you want to help get rid of the 20 minute selective embargo enforced by NZX? Yes or no.

If yes, a little investor power will be of major assistance - please send your view to the Securities Commission however brief and to the point that it is. In particular your view will help if it breaks down the official line that the brokers represent the market.

[Lizard]

PRC is dual listed so needs to report full statements to ASX and they can be obtained there. I don't see evidence of many companies without an ASX listing putting the statements on their web-site - just the full reports at a much later date.

However, I will drop the subject and leave you to discuss the 20 min delay.
Irritating perhaps, but then unless you are watching the screen all day, it doesn't often make too much difference. Besides, there is always the option of opening an account with Direct Broking.

[Casa del Energia]

I don't $%&#$# well care if you can 'get around' NZXs 20 min or pay thing - what about 'principles'.
Paying to have information passed on in a timely fashion that was freely published by a third party AND delying quotes by 20 mins is just, well - it plain stinks more than an up-wind skunk.
(And it's tedious having to troll around a multitude of URLs just to get the real info that should be available from the one site anyway).

Hurumph.