RBNZ and NZX in talks about settlement systems

Wednesday 2nd December 2009

The Reserve Bank of New Zealand and NZX are in talks about a possible joint venture that would combine the stock exchange’s settlements system with the central bank’s Austraclear system.

The negotiations follow suggestions from the Capital Markets Taskforce that a single system may serve the nation’s capital markets better and drum up interest from overseas investors. The NZX is in the process of upgrading its settlements system and looking to add new types of securities including milk powder futures.

“As a first step the bank and NZX will undertake a review to determine the feasibility of jointly providing the clearing and settlement functions of the two organisations,” they said in a joint statement.

In August, NZX chief executive Mark Weldon said New Zealand doesn’t need two settlement systems and there was potentially no need for the bourse operator to run its own settlements.

Austraclear offers real time gross settlement for bonds, bills, notes, equity and matching currency pairs.

Businesswire.co.nz

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