Unlisted to pay for its success

Internet share trader Unlisted has become a victim of its own success. The company, which began as a low-cost alternative to the New Zealand stock exchange, is to be regulated.

Yesterday, Commerce Minister Margaret Wilson said it should be subject to the disclosure, insider trading and oversight provisions of the Securities Markets Act. It would have to register as an exchange.

The reason: Unlisted was now trading 21 companies and being used by big investors, so it should afford investors protection under the law.

Unlisted said that blew away its business model, and it was not consulted enough about the decision.

Unlisted competes with the NZX Alternative Exchange Market, which caters for small companies.