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:

Gold Report 21st May 2019
NZ dollar falls after RBA governor flags potential rate cut
ASB reviews ownership of Aegis
Auckland Airport kicks off next phase of expansion
Cashed-up Plexure eyes acquisitions to accelerate growth as loss shrinks
Tower turns to 1H profit, lifts FY guidance
IRD should have doubled claim against Watson's Cullen Group - Professor
Investore FY profit falls 16% on smaller valuation gain, signals flat dividend for 2020
Synlait receives cease and desist letter regarding Pokeno plant
21st May 2019 Morning Report

IRG See IRG research reports