The announcement last week by Mark Weldon, CEO of the NZX, that they are going to sell their flash new carbon trading registry business TZ1 Registry to Markit, a global financial information services company, leaves the financial world more than just a little perplexed.
Mark has been banging on about his registry and how much potential for business and I guess profit that this new registry will have.
Then why sell the golden goose?
That is where Weldon either becomes the cleverest man in the world for flogging off this dead horse to a poor sucker, in this case Markit, or the biggest hypocrite New Zealand business has ever seen for turning his back on a growth opportunity akin to the second coming of the tulip bulb craze of the 1600s.
Most sensible people know that this carbon trading lark is based on a lie and eventually it will all come crashing down on itself and that is where Mark becomes a clever little bastard-ditching a no-hoper before it becomes a worthless millstone .
Payment will be made in Markit shares, currently worth around $NZ 60 million, so unfortunately this exposes the NZX to losses further down the line when carbon trading fails.
Lets hope Mark will be smart enough to see that coming and jump ship before that happens.
Mark Weldon's hypocrisy is clearly evident because he has fully backed this TZ1 carbon trading venture with all the rhetoric, pomp and circumstance and the so-called "science" that backs it up and is now leaving the registry services part of it behind.
NZX is left with the relatively insignificant TZ1 carbon trading division.
Prospective and current investors in the New Zealand Stock Exchange [NZX.NZ] will be left wondering, does Mark Weldon believe in the carbon trading business or is he just taking advantage of the ignorant and blind?
Lets hope it is the latter.
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c Share Investor 2009