Regulatory Alerts2022-05-17
Joint Regulators Statement on Changes to NZClear Ownership and Operation
The Financial Markets Authority and the Reserve Bank of New Zealand issued this statement to clarify policy expectations regarding prospective changes to the ownership and operation of the NZClear securities settlement system. The regulators require that any transition or replacement of the system must align with the objectives of maintaining a sound and efficient financial system while preventing significant damage from participant failures. Key mandatory outcomes include consistent observance of CPMI/IOSCO Principles, adherence to designated settlement system oversight standards, full onshore operation to ensure regulatory influence, and the maintenance of transaction-by-transaction delivery versus payment settlement to eliminate settlement risk.