The stock exchange angrily attacked the Securities Commission yesterday for questioning the "poor market practice" of NZX's rules governing market participants.
NZX chief executive Mark Weldon denied the commission had asked the exchange to review its participant rules following the commission's insider trading investigation into the takeover of Wrightson byCraig Norgate's Rural Portfolio Investments.
He accused commission chairwoman Jane Diplock of putting inaccurate information into the market. Diplock had told Radio New Zealand the commission had referred the matter to NZX to see if the rules needed to be changed.
"That is absolutely not in the report," Weldon said. He accused the commission of "casting aspersions on the rules governing the market. We will be responding formally on that comment made in the media".
The commission said it referred to NZX the report published on Monday on NZX member ABN Amro Craigs selectively releasing price-sensitive information about the takeover by RPI, which was being advised by Craigs' investment banking arm.
The commission cleared Craigs of insider trading after its banking arm passed on information to its brokers and clients that Marathon Asset Management was poised to sell a pivotal 7.9 per cent stake in Wrightson to RPI.
The commission said insider trading law, under review for the past two years, needed to be updated.
Weldon said NZX supported tighter insider trading laws that were easier to apply. The draft law would provide a better outcome but he added it was not for NZX to enforce insider trading law.
