XBRL: Project First Step

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XBRL: Project First Step

11 May 2004

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Today’s presentation

• Project introduction

• NZX motivation

• Next steps

• Q/A

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NZSE: June 2002

• Mutual• Low Cost Operator

with narrow focus • Aging infrastructure

– Technology– Non technology

•Clear mandate for change

•New leadership•Corporate roadmap

But…

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Starting point for NZX

Project First Step

• MAP (Market Announcement Platform)

• Limited resource

• New mandate

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Participants in Project First Step

Appendix One

ICANZ(XBRL NZ)

Listed Issuers

Accounting Firms

NZX

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Improving Appendix One

• Listing rules

• “Unlinked” terminology

• Word/Excel submissions

•Improve data collection

•Standardize terminology (i.e., NZ GAAP, IFRS)

•Separate data from format application

The goal:

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Existing Appendix One process

NZX acceptance and distribution

Real time broadcast of formatted text

Issuer preparation

Email/Fax of original document

Market consumption

Re-key information for distribution

Pass through

Advisor Issuer

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Project First Step working model

NZX

ICANZ

Distribution to the market

IssuersAccounting Firms

Cooperation in defining improved Appendix One

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2. NZX MOTIVATION

1. Data product revenue

2. Attracting issuers

3. Fulfillment of regulator role

4. Internal efficiencies (i.e., cost)

Competitive Exchange Environment

Exchange business drivers

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NZX has two primary motivations

Shareholder value

NZ capital markets

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1. Data Revenue

• New product– Real time access – Accurate database of

historical financial data

• Target group– Existing subscribers– Analysts– Professional traders

Liquidity impact

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2. Attracting Issuers

• Increased competition– Retain NZ listings– Attract dual listings

• Contain compliance costs

• Minimize “Big Stage” pressure

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3. Fulfillment of Regulator Role

• Continuous disclosure

• Error reduction and validation

• Improved service

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4. Internal Efficiency

• Error reduction

• Reduction of staff

• Application across NZX business

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3. NEXT STEPS

Two workstreams

Appendix One Implementation

Identify new opportunities

Project First Step

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Appendix One implementation

• Pull, not push

• Gradual issuer adaptation

• Back entry of data

100% issuer participation

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Identifying new opportunities

Issuers

• External reporting • Internal reporting• Performance reporting

• Issuer announcements• Participant declarations• Market information

NZX

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Identifying new opportunities

Issuers NZX

Appendix One

information

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Identifying new opportunities

Issuers NZX

Statistics NZ

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Identifying new opportunities

Issuers NZX

Statistics NZ

What other opportunities exist?

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Key success factors

• Intelligent cooperation

• Well defined incentives

• Clear goals

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