SECOND STOCK EXCHANGE

Southland Times, Issue 19277, 23 June 1924, Page 6

SECOND STOCK EXCHANGE

MOVEMENT IN CHRISTCHURCH. ACTION BY SHAREBROKERS. (Special to the Times.) CHRISTCHURCH, June 21. A movement is on foot in Christchurch to establish a second stock exchange in competition with the existing Christchurch Stock Exchange (says the Lyttleton Times). Action has been taken with this object in view by a number of sharebrokers because the Christchurch Stock Exchange has been a close corporation for the past four years. The membership of the exchange has been closed with thirty, and it is at present impossible to obtain extra seats. The difficulty of the position is emphasised by the fact that quite recently a vacant seat was sold for £250. The Christchurch Stock Exchange it is understood, intends to discuss the matter next Tuesday when a motion will be submitted providing for an increase of something like five seats which will be avail able at a premium, but it is not known whether there are at present any applicants for extra seats. It is not quite clear why the new movement has been set on foot, but there is nothing to prevent any group of seven licensed sharebrokers combining to form a stock exchange, and if they are of unexceptional character they would be granted the authority to operate. The Shareholders Act provides that every stock exchange or association of sharebrokers shall, within one month after its formation, forward to the Minister of Stamp Duties a list of its members and a duly certified copy of its rules. The Minister shall, on payment of a fee of £l, enter in a register such particulars, and thereupon such stock exchange or association shall become a registered stock exchange under the Act, provided that an association of sharebrokers shall not be registered as a stock exchange unless there are at least seven members.

The new movement is being organised by a number of licensed sharebrokers but applications for registration will not be made until several of the prospective members are able to obtain licenses under the Act. The present stock exchange up to about ten years ago was known as the Stock Exchange of Canterbury, but its name was then changed to the Christchurch Stock Exchange and regulations were gazetted governing its constitution. It is affiliated to the Stock Exchange Association of New Zealand and it is expected that the new body will apply for affiliation to that association in due course. The number of prospective members of the new stock exchange is not being made public at present.