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2023-11-05

Financial Market Infrastructures Act Designation Notice (ESAS) 2023

The Reserve Bank of New Zealand issued this notice to designate the Exchange Settlement Account System as a designated Financial Market Infrastructure under the Financial Market Infrastructures Act 2021. The designation, effective 1 March 2024, establishes the Reserve Bank as the operator and participant while classifying the system as a pure payment system of systemic importance. This status triggers the application of Subpart 5 of Part 3 of the Act and specific provisions of the Personal Property Securities Act 1999 to ensure regulatory oversight.

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Page 1 of 2 Financial Market Infrastructures Act Designation Notice (ESAS) 2023 Title

  1. This is the Financial Market Infrastructures Act Designation Notice (ESAS) 2023. Effective Date
  2. This notice comes into effect on 1 March 2024. Authority
  3. This notice is issued under clause 4 of Schedule 1 of the Financial Market Infrastructures Act 2021 (the “Act”) by the Reserve Bank of New Zealand, and has legal effect. Interpretation
  4. In this notice: (a) references to “FMI” are references to the Exchange Settlement Account System; (b) “Exchange Settlement Account System” means the exchange settlement account system owned by, and operated and managed by or on behalf of, the Reserve Bank of New Zealand; and (c) any term that is defined in the Act and used, but not defined, in this notice has the meaning as in the Act. Designation
  5. The Exchange Settlement Account System is declared to be a designated FMI. Operator
  6. The Reserve Bank of New Zealand is the operator of the FMI. Documents that set out the rules
  7. The documents that set out the FMI’s rules are: (a) the Exchange Settlement Account Terms and Conditions (incorporating service levels); and (b) the Settlement Submission Mechanism Notice.

Page 2 of 2 Specified operator 8. The Reserve Bank of New Zealand: (a) is the specified operator of the FMI; and (b) is an operator to which section 103A of the Personal Property Securities Act 1999 applies. Systemic importance 9. The FMI is systemically important. Operator/s are participants in the FMI 10. The Reserve Bank of New Zealand is a participant in the FMI. FMI is a pure payment system 11. The FMI is a pure payment system. Application of subpart 5 12. Subpart 5 of Part 3 of the Act applies to the FMI. Class or classes 13. For the purposes any standards issued under section 31 of the Act, the FMI falls within the following class or classes: pure payment system. Dated this 6th day of November 2023

Scott McKinnon Director of Prudential Supervision Reserve Bank of New Zealand

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