FMI Standard 10: Physical Deliveries

FMI STANDARD 10:
PHYSICAL
DELIVERIES
FS10

Ref #20368233 v1.0
DOCUMENT VERSION HISTORY
1 March 2024 First issue date
INTRODUCTION
Application
i. This standard applies to every operator of a designated FMI that was specified
in its designation notice under section 29(2)(f) of the Financial Market Infrastructures Act 2021 (the Act) as falling within one or more of the following classes of designated FMIs:
(a) a securities settlement system; or
(b) a central securities depository; or
(c) a central counterparty.
Legal powers
ii. Under section 8 of the Act the regulator is defined as the RBNZ and the FMA
acting jointly.
iii. Section 12 of the Act provides the regulator's functions. These include
regulating designated FMIs, dealing with designated FMIs that are distressed, and other functions under the Act.
iv. Subject to certain statutory prerequisites, section 31 of the Act empowers the
regulator to make standards for designated FMIs.
v. Section 34 sets out the matters that standards may deal with or otherwise
relate to. Section 34(1)(e)(i), (ii) and (v) provides that the regulator may make standards that deal with, or otherwise relate to, general business risk, operational risk and custody risk. Interpretation
vi. Words and phrases used in this standard have the same meaning as in the
Act.
Commencement
vii. This standard comes into force on 1 March 2024.

Ref #20368233 v1.0
REQUIREMENTS
1) An operator must clearly state its, and the FMI’s, obligations under the FMI’s rules,
policies, and procedures with respect to the delivery of physical instruments or commodities for settlement.
2) An operator must identify, monitor, and manage the risks associated with the delivery of
physical instruments or commodities for settlement.
(See Guidance for Standard 10: ‘Physical Deliveries’, in Guidance for the FMI Standards for more detail).