The Financial Markets Authority (FMA) is taking an interest in NZX's disclosures over the performance of the Clear grain exchange, after testimony given in a court hearing with Clear's founders painted a weaker picture of the business.
The stock exchange operator attracted the attention of the financial markets watchdog after Fairfax reported NZX chief executive Mark Weldon told a court in Melbourne that Clear was showing a "substantial economic loss".
NZX valued the grain exchange's software at $7.8 million in its 2010 annual report, and is waiting for an audit on the valuation of the grain exchange, which it expects to receive in about five more working days.
"We have asked some questions of NZX and we are following their inquiry with interest. We expect to hear their conclusions late this week or early next," FMA chief executive Sean Hughes said in an emailed statement.
"Because this is an issue relating to continuous disclosure the FMA, pursuant to Part 2 of the Securities Markets Act, has a statutory responsibility to oversee the compliance of listed issuers," the statement said.
Last week, NZX filed High Court proceedings over its $A6.4 million purchase of the Clear grain exchange in 2009, claiming "breach of warranty and related claims". NZX named grain exchange co-founders Grant Thomas and Dominic Pym and their companies Ralec Commodities Pty and Ralec Interactive Pty.
That suit prompted the grain exchange's Mr Thomas to indicate, through his lawyer, Rob McGirr, that he would file a counter-claim, according to Fairfax.
NZX said Mr McGirr had made "exaggerated and inaccurate" statements, and suggestions of $17 million of earn-outs were "irresponsible".
Fairfax said NZX was ordered to pay Mr Thomas $A259,705 by a Melbourne court six weeks ago that was due under a settlement deal made last year.
"NZX is fully confident it has discharged its obligations appropriately and reasonably, and is not swayed by tactics of this nature," the company said in a statement.
"The earn-out targets for the Clear business were ambitious, which is why NZX agreed to these being classified as earn-outs, rather than to augment the original purchase price."
