Financial Services Quarterly
New designated settlement system
The NZCDC Settlement System, operated by New Zealand Clearing and Depository Corporation, has been declared a designated settlement system under Part 5C of the Reserve Bank of New Zealand Act.
Reserve Bank Head of Prudential Supervision Toby Fiennes, and Securities Commission Chair Jane Diplock, said "the designation gives statutory backing to the finality of settlement and netting of transactions through the system so that in the event of a failure by a participant, transactions cannot be unwound".
Click here to visit the Reserve Bank website for questions and answers on the new settlement system.
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