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Summary of Questions for Submissions


Reform of Securities Trading Law: Volume Two: Market Manipulation Law

Regulatory Competition and Policy Branch
[ Last Updated 29 November 2005 ]


  1. Should market manipulation be viewed as a private wrong or a wrong against the market?
  2. What definition of market manipulation should be adopted for any law that is introduced in New Zealand?
  3. Should the concept of market manipulation focus on the purpose or the effect of the conduct? What are the reasons for your view?
  4. Do you believe market manipulation exists in New Zealand?
  5. Should we regulate market manipulation in New Zealand?
  6. What are the reasons for your view?
  7. If you are in favour of regulating market manipulation, what do you think the policy justification for our market manipulation legislation should be?
  8. Should a market manipulation regime adopted in New Zealand rely on a general prohibition, the prohibition of specific practices or a combination of the two?
  9. Should a general prohibition against misleading or deceptive conduct in relation to dealings in securities be adopted in New Zealand?
  10. If such a provision is adopted, should the Fair Trading Act 1986 be amended to expressly exclude conduct which relates to securities markets?
  11. If such a provision is adopted, should the Commerce Commission or the Securities Commission be the body responsible for its enforcement?
  12. Should a specific prohibition against conduct creating an artificial price be adopted in New Zealand?
  13. Should the prohibition be effect based or purpose based?
  14. Should the prohibition be broad or prescriptive?
  15. Should a provision prohibiting fictitious transactions be adopted in New Zealand?
  16. Should the provision be broad or prescriptive?
  17. Should the law include a prohibition on making false or misleading statements in relation to dealings in securities?
  18. Should the provision be effect or purpose based?
  19. Does the fact that short selling is dealt with by self regulation impact on investor confidence in the New Zealand sharemarket? Give reasons for your view.
  20. Should short selling be regulated as part of any market manipulation law implemented?
  21. If so, what do you think the policy justification for short selling legislation should be?
  22. How should any short selling legislation deal with short selling other than on registered stock exchanges?
  23. What should the relationship be between the NZSE membership regulations and any legislative provisions?
  24. Should the Securities Commission be given a civil enforcement role in any market manipulation regime introduced?


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