Updated version of Derivatives Law in New Zealand available

An updated version of Bell Gully's Derivatives Law in New Zealand is now available.

Bell Gully first published Derivatives Law in New Zealand in May 1999, shortly after the enactment of New Zealand's netting legislation.

Since then, there have been many legislative and judicial developments that, while not necessarily targeted at derivatives, could affect derivatives activity in New Zealand. For example:

• the Personal Property Securities Act 1999 has introduced a new regime governing security interests in personal property, which may apply to credit support arrangements as well as repo and securities lending transactions;
  
  
• recent amendments to the Securities Markets Act 1988 regulate the operation of a futures market or a futures exchange in New Zealand;
  
  
• the Court of Appeal in Perry Corporation v Ithaca (Custodians) Limited considered the application of New Zealand's substantial security holder disclosure regime to cash-settled equity swaps;
  
  
• recent amendments to the Reserve Bank of New Zealand Act 1989 introduce a new netting regime, which applies to "designated payment systems";
  
  
• the Gambling Act 2003, which comes into force on 1 July 2004, will introduce more uncertainty over whether derivatives are "gambling" (and, therefore, illegal); and
  
  
• the Public Finance (State Sector Management) Bill, once enacted and in force, will substantially change the law relating to the capacity of Crown entities to enter into derivative transactions.

The updated version of Derivatives Law in New Zealand incorporates all these changes, among others.

Derivatives Law in New Zealand is available online and hard copies can be requested by emailing info.

Enquiries and information

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