Sharechat Logo

RBNZ to keep and upgrade NZClear, turns down NZX bid

Friday 11th March 2016

Text too small?

The Reserve Bank of New Zealand will keep and upgrade its NZClear security settlement and depository business after a tender didn't attract "suitable bids", including an offer from stock market operator NZX. 

The central bank will invest in a new platform for NZClear, which provides clearing and settlement services for high-value debt securities and equities, after none of the bids for the system met its service requirements and commercial terms, the central bank said in a statement. The RBNZ looked at selling NZClear after a strategic review in 2014 found it wasn't a core business for the bank and required significant investment. 

The new NZClear platform will be separate from the bank's Exchange Settlement Account System, which processes payments and also needed upgrading. 

NZClear generated a net profit of $2.8 million on revenue of almost $7 million in the year ended June 30, 2015, up from a profit of $2.4 million on sales of $6 million in the previous year owing to increased trading through the system. 

In a separate statement, NZX said it had planned to operate a single clearing and settlement system for the New Zealand market, but its offer wasn't accepted.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: Blue-chip stocks Meridian, A2 lead market lower
NZ dollar rises on Brexit hopes, rate cut reassessment
Three not failing, just needs a new owner - MediaWorks CEO
Major investors back new CBL class action targeting directors
Rip Curl purchase a done deal on Kathmandu proxies alone
Comvita chair Neil Craig eyes the exit once he finds a new CEO
Mercury raises guidance on increased storage, high spot prices
Eroad reports strong 3Q sales growth, eyes ASX listing
MediaWorks puts TV business on the block
NZ dollar benefits as preliminary Brexit deal improves risk appetite

IRG See IRG research reports