The idea to establish a Stock Exchange in PNG goes back more than a decade. Numerous studies and investigations were undertaken and papers presented by economic commentators, government advisors and organizations, all exploring the viability of a Stock Exchange in the Papua New Guinea economy.
It was not until 1994, when the then Government established a Stock Exchange Steering Committee to oversee a project on the development of a Stock Exchange in PNG. This committee comprised of representatives from the Bank of PNG, The Department of Finance, The Registrar of Companies and McIntosh Securities.
The Government´s commitment was further enhanced by approving funding through the Bank of Papua New Guinea to fund the establishment phase of the Stock Exchange. In 1996, significant progress had been attained with major foundational work completed. This included among other things, the new companies Act and the Securities Act. These two pieces of legislation were vital in setting the legal framework for a Stock Exchange to be established. In 1997, the Companies Act 1997 and Securities Act 1997 were pass by Parliament, paving the way for a securities market to be established.
Since the beginning of 1998, significant progress had been made in advancing the early function of the Stock Exchange. The corporate vehicle for the Stock Exchange, POMSoX was incorporated as a private company on the 26th January 1998. POMSoX is closely aligned to the Australian Stock Exchange (ASX). The ASX has licensed to POMSoX its Business and Listing Rules. POMSoX procedures are a mirror image of the ASX.
POMSoX formally opened its office on the 28th of April 1999, and subsequently launched its Trading System. On the 4th June 1999, the Securities Commission of PNG formally approved POMSoX as a Stock Exchange. The approval enabled POMSoX to commence live trading operations.
The major aim of POMSoX is to provide a medium for the mobilization and raising of national and international capital for the long-term benefit of the citizens of Papua New Guinea. POMSoX is important to ordinary people because they can buy a small number of shares in a company and they can be part of the launching of new companies in PNG and overseas. It is an investment option that they can use their savings in productively rather than holding them in a savings account. It means that new companies which need money to start of a new business in PNG can get people to buy shares in that business. Most of all, it gets more money flowing within PNG and creates growth and wealth.