Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


New designated settlement system


Date 7 September 2012

New designated settlement system

The Reserve Bank of New Zealand and the Financial Markets Authority (FMA) today announced that the NZClear Settlement System has been declared a designated settlement system under Part 5C of the Reserve Bank of New Zealand Act.

The designation will take effect from 4 October 2012.

The Reserve Bank and FMA are joint regulators of designated settlement systems. The NZClear Settlement System is operated by the Financial Services Group of the Reserve Bank of New Zealand.

Reserve Bank Head of Prudential Supervision Toby Fiennes, and FMA Head of Compliance Monitoring Elaine Campbell said the designation gives statutory backing to the finality of settlement and netting of transactions through the system so that in the event of failure by a participant, transactions cannot be unwound.

Designated settlement systems are subject to ongoing oversight by FMA and the Reserve Bank. However, it is not compulsory for settlement systems operating in New Zealand to be designated.

New Zealand has three existing designated settlement systems: the Reserve Bank’s Exchange Settlement Account System, the Continuous Linked Settlement System operated by CLS Bank International and the NZCDC Settlement System which is operated by New Zealand Clearing and Depository Corporation, a wholly-owned subsidiary of NZX Limited. The first two are pure payment systems and so are regulated solely by the Reserve Bank whereas the last is a settlement system and therefore regulated by both the Reserve Bank and FMA.

A settlement system will only be recommended for designation after a thorough assessment by the regulators, who will assess, amongst other things, the clarity and legal certainty of the rules of a system, its financial soundness and risk management policies, and the capability and capacity of the operator.

Questions and answers on designated settlement systems are available on the Reserve Bank website

© Scoop Media

Business Headlines | Sci-Tech Headlines


Maritime Union: Deepening Supply Chain Crisis Requires Action

Maritime Union of New Zealand National Secretary Craig Harrison says the global COVID-19 pandemic exposed pre-existing weaknesses in our logistics sector, and created enormous problems... More>>

Air New Zealand: Employees Recognised With $1,000 Share Award

The efforts Air New Zealand employees made during one of the airline’s toughest years will be recognised via an award of $1,000 worth of company shares to all permanent employees... More>>

Consumer NZ: Bank Complaints On The Rise, Survey Shows

Nearly one in five Kiwis had a problem with their bank in the past year, Consumer NZ’s latest satisfaction survey finds. Consumer NZ chief executive Jon Duffy said the number of bank customers reporting problems had jumped to 18%, up from 11% in 2020... More>>

Mercury: Enters Into Binding Agreements To Acquire Trustpower’s Retail Business

Mercury NZ Limited (Mercury) has announced that it has entered into binding agreements with Trustpower Limited (Trustpower, NZX:TPW) to acquire Trustpower’s retail business for NZ$441 million... More>>


ASB: New Zealanders Missing Out On Hundreds Of Millions In KiwiSaver Government Contributions

New Zealanders have just over a week to ensure they’re eligible for the maximum annual government KiwiSaver contribution... More>>

Stats NZ: GDP Climbs 1.6 Percent In March 2021 Quarter Following December Dip

Gross domestic product (GDP) rose by 1.6 percent in the March 2021 quarter, following a 1.0 percent fall in the December 2020 quarter, Stats NZ said today. "After an easing of economic activity in the December quarter, we’ve seen broad-based growth in the first quarter of 2021... More>>