KEY POINTS:
The stock exchange is asking issuers of listed structured debt about the impact the international credit crunch is having on their financial position.
The move comes after NZX last month wrote to listed finance companies to confirm they were keeping the market up-to-date with financial developments.
An NZX spokeswoman said it had written on Tuesday to 10 structured debt issuers and given them until this morning to reply.
The letter from NZX head of market services Elaine Campbell said: "You willbe aware of the recent international market volatility stemming from troubles in the sub-prime mortgage market in the United States.
"There has been speculation of a widespread credit crunch affecting the financial sector and potential for debt instrument default ... Given the current environment, NZX is writing to issuers of listed structured debt. This provides such issuers an opportunity to demonstrate transparency about the effects of the international economic situation on their securities."
The letter would let issuers provide information and thus show they were complying with obligations to disclose material information immediately.
The NZX did not have specific cause to be concerned that the issuers were meeting their obligations under the continuous disclosure rules, but it sought to clarify that. Responses were being released to the market in full, and if any responses were not received by the due time that would also be disclosed.
The move to write to 15 listed finance companies last month followed the receivership of Nathans Finance, and gave the firms an opportunity to provide information to the market. That flushed out trouble at NZAX-listed Property Finance Group which later went into receivership.
The Securities Commission also last month asked 67 finance companies to confirm their current prospectuses complied with the law. Five Star Consumer Finance, which went in receivership, was the only one to not do so.
