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".
For more information on any of the cases, articles and features in Financial Services Quarterly, please email Rachel Gowing or call on 64 9 916 8825.
This publication is necessarily brief and general in nature. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.