Regulatory Alerts2022-05-17
Submission on the Financial Market Infrastructures Bill Exposure Draft
The New Zealand Financial Markets Association submitted feedback on the Reserve Bank of New Zealand's Financial Market Infrastructures Bill Exposure Draft, emphasizing that derivatives market participants will be indirectly regulated as direct or indirect participants. The submission requests expanded consultation rights for participants regarding regulatory standards and FMI designations, while urging the regulator to align the statutory management regime with the RBNZ Act and exclude FMIs from the CIMA framework. Additionally, the NZFMA advocates deferring the Bill's passage until the Phase 2 Review concludes to ensure consistent legal certainty for collateral and netting arrangements, and proposes reinstating a statutory manager indemnity to maintain market confidence during resolution.