It was a quiet day - too quiet - at Unlisted

By PAUL PANCKHURST

Sharebrokers will trade shares through a new and unregulated trading facility, Unlisted, despite stock exchange claims that it is a threat to the reputation of New Zealand's capital markets.

Unlisted went live yesterday, offering shares in three companies: Skyline Enterprises, Bridgecorp Holdings, and Blue Sky Meats. No shares traded in the facility's first session, from noon to 5pm.

Unlisted spokesman Chris Russell said the zero result was not a surprise for the first day. He also said the low-key launch - a press release - was appropriate for Unlisted as "a low-key, niche operation".

Unlisted said ABN Amro Craigs and Direct Broking had made arrangements to be able to trade through the service and more brokers were expected to follow.

One firm ruling itself out is ASB Securities. Managing director Tim Preston said: "We're for a regulated market."

NZX head Mark Weldon has claimed the venture is a threat to the reputation of New Zealand's markets.

Two more names emerged yesterday as backers of Unlisted: financial advisers Garth Ireland and Bevan Wallace, of Ireland, Wallace & Associates. Also involved are former stock exchange head Bill Foster and Skyline Enterprises' Barry Thomas.

M-co, the company that operates the electricity trading market, is a 50 per cent backer and is also operating the trading system.

The venture pitches itself as a way for small to medium-sized companies to have their shares traded without the costs and regulations of a stock exchange listing.

The exchange last month launched the AX, a market that is a lightly regulated alternative to the main board.