Winston demands FMA SkyCity share probe
NZ First leader claims Black Friday trades indicate "unacceptable behaviour"
NZ First leader Winston Peters has urged the FMA to investigate "a huge volume" of trading of SkyCity [NZX: SKC] shares last Friday – the day the government and the gambling operator agreed there would be no taxpayer contribution to the construction costs of the company’s controversial convention centre.
The decision was ratified by SkyCity’s board on Saturday and announced by Steven Joyce – the minister responsible for negotiations with SkyCity about the centre – on Sunday.
Although there had been no market announcement of the agreement, Mr Peters has said 3.4 million SkyCity shares were traded on Friday 13 – two million more shares than the trading days before and after.
"There was behaviour which was simply unacceptable," Mr Peters claimed.
Mr Joyce has said he thinks Mr Peters is “just trying to make a story out of something” and that it was a matter for SkyCity and the FMA to discuss.
"We [the government] didn't go out there and talk to anybody," Mr Joyce said.
SkyCity has declined to comment.
The FMA has confirmed to NBR it has not received any complaints about trading in SkyCity shares but that NZX is looking into the issue.
“The FMA and NZX have robust procedures for monitoring any unusual trading activity on the exchange,” FMA director of compliance Elaine Campbell has said in a statement.
“NZX is the frontline regulator and we have confirmed with it that it is reviewing recent trading activity in SkyCity shares, according to its standard procedures.
“Once it has completed that review we will discuss any matters with it that may raise the prospect of further review,” Ms Campbell said.
“As a general rule, to ensure the integrity of markets, we do not comment on such matters. However, given the nature of the allegations being made we will update the market in due course.”
Nick Grant
Wed, 18 Feb 2015
Wed, 18 Feb 2015
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Winston demands FMA SkyCity share probe
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