NZX implements mutualised default fund
NZX Limited
Level 1, NZX Centre
11 Cable Street
PO Box 2959
Wellington 6140
New Zealand
Tel +64 4 472 7599
www.nzx.com
www.nzx.com 1 of 1
9 November 2018
NZX implements mutualised default fund
NZX has redesigned its Clearing House capital structure with the implementation of a
mutualised default fund today.
The fund requires contributions from dairy derivatives clearing participants, diversifying the
capital available for NZX Clearing to cover the potential risk of a participant defaulting. A fund of
this nature is in line with global best practise and, given the growth trajectory of NZX’s dairy
derivatives market, it is an appropriate time for the exchange to implement this structure.
NZX Head of Markets Development & Clearing Benjamin Phillips commented: “The mutualised
default fund is an essential enhancement to NZX’s risk management framework and will support
the growth of our global derivatives market. Core to the delivery of the fund is efficient utilisation
of capital when providing market protection, which in turn supports market growth.”
The fund’s implementation will allow for great growth of the dairy derivatives market before the
exchange is required to contribute further capital. It builds on a series of initiatives NZX has
delivered over the past 12 months to grow the market, including the introduction of increased
trading functionality, and extension of market trading hours to meet customer demand in Asia
and Europe.
The fund’s introduction follows a 12-month consultation and engagement period with the market
on proposed changes and amendments to the NZX Clearing and Settlement Rules. The
updated rules and default fund policy can be found at the link below:
https://www.nzx.com/regulation/nzx-rules-guidance/default-fund-rule-amendments
For further information please contact:
Hannah Lynch
Head of Communications
T: 09 308 3710
M: 021 252 8990
E: hannah.lynch@nzx.com
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
Other issuers discussed similar conditions around this time
Matched by meaning across NZX announcement text, not keywords — based on our semantic index of announcement bodies.
- FSF — Fonterra Shareholders' Fund: Fonterra Bond Offer Final Terms Sheet Released2018-11-08
“NZX waiversNZX has approved the inclusion of transfer restrictions in the Trust Documents permitting Fonterra to refuse a transfer of the Bonds if the transfer is not in multiples of $1,000 and/or results in the transferor or transferee holding an aggregate…”
- FCG — Fonterra Co-operative Group Limited: Fonterra Bond Offer Final Terms Sheet Released2018-11-08
“NZX waiversNZX has approved the inclusion of transfer restrictions in the Trust Documents permitting Fonterra to refuse a transfer of the Bonds if the transfer is not in multiples of $1,000 and/or results in the transferor or transferee holding an aggregate…”
- FCG — Fonterra Co-operative Group Limited: Fonterra Launches Bond Offer2018-11-05
“NZX waiversNZX has approved the inclusion of transfer restrictions in the Trust Documents permitting Fonterra to refuse a transfer of the Bonds if the transfer is not in multiples of $1,000 and/or results in the transferor or transferee holding an aggregate…”