Financial Market Infrastructures Act Designation Notice (CLS) 2023

Financial Market Infrastructures Act Designation Notice (CLS) 2023 Title

1. This is the Financial Market Infrastructures Act Designation Notice (CLS) 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 CLS System; (b) “CLS System” means the continuous linked settlement system operated by CLS Bank International; 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 CLS System is declared to be a designated FMI.
   Operator
6. CLS Bank International 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 CLS Bank International Rules; and
   (b) the Settlement Member Agreement.

Specified operator
8. CLS Bank International:
(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 is participant in the FMI
10. CLS Bank International 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 of any standards issued under section 31 of the Act, the FMI falls within the
following class or classes: overseas-equivalent FMI.
Dated this 6th day of November 2023

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Scott McKinnon
Director of Prudential Supervision
Reserve Bank of New Zealand