NSX to focus on dual listings over the next 12 months

Following the departure of its chief operating officer, National Stock Exchange of Australia (NSX) chief executive Max Cunningham told Financial Standard about his plans for the exchange in the near future, including its first-ever listing of a Canadian company next week.

Former chief operating officer Chan Arambewela left his role in June after some five years with the organisation.

Cunningham said Arambewela was mandated with dual responsibilities to oversee financial markets operations and office management, including the communication with its outsourced chief financial officer (OCFO) and related personnel in Canada.

In replacing Arambewela, Cunningham wished to construct a better distinction in those duties, and hence, Minty Chowdhary has joined as finance and office manager this week to allow the upcoming chief operating officer to better focus on markets operations.

The search for a replacement is ongoing and will likely be confirmed and finalised this month, he said, stating the role is being looked after by its technology team in the interim.

Further, the NSX also welcomed three additional members, including a senior network engineer, a product manager and an intern to support the launch of a new trading platform that was announced in April in a partnership with Aquis Exchange, a subsidiary of SIX Group AG.

"The big part of the appointments is that we're putting in a new trading platform that requires a lot of hands on deck. A lot of building, testing, and customer engagement that relate to that trading platform rollout and the management side of it," he said.

The NSX is also aiming to turn itself into the "third trading venue" for ASX companies by the end of 2027, where the appointments will also help uplift the material expectations laid down by the market regulator.

"When we have the new service to trade ASX securities, it will provide diversity, lower costs for our customers, additional and diversifying of our revenue opportunities," Cunningham continued.

The NSX currently has about 50 companies listed on its platform with a total market capitalisation of $2.4 billion.

Another significant opportunity Cunningham observed is the dual-listing component available to the exchange after being acquired by CNSX Global Markets, the parent company of the Canadian Securities Exchange (CSE).

"Where we're getting the most interest from is the prospect of dual listing Canadian companies... And a lot of them are in the mining space, probably over two thirds, and we think they're going to be one of our main sources of listings over the next 12 months," Cunningham said.

The NSX is expecting a new listing next week, which "will be the biggest that we've had listed in about 10 years."

Gladiator Metals is listing on the NSX on September 15. While it is incorporated and currently only operates in Canada, its management is split between Australia and Canada.

"I think we're in a 'mining super cycle', and whether it's gold or copper or rare earths or any other commodities, there are varying forms of demand for these asset classes at different points," he said.

"I think the demand for that is going to be around for the rest of this decade and well into the next, and that's where we're positioning ourselves."