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Amendment to Clearing & Settlement Rules & Depository Rules

Regulatory30 August 2023NZXFinancials

www.nzx.com 1 of 1
31 August 2023


Introduction of Recovery Tools

Amendments to Clearing and Settlement Rules and Procedures and Depository

Rules


New Zealand Clearing and Depository Corporation Limited (NZCDC), a subsidiary of New

Zealand Exchange (NZX), has been consulting with the market to introduce financial recovery

tools into the rules that govern the operation of the NZCDC settlement system. Financial

recovery tools provide different avenues to manage a default of a large participant in what is

considered extreme scenarios.


Such financial recovery tools are a required by the Standards under the Financial Market

Infrastructures Act 2021, which NZCDC will transition to in 2024. In order to give effect to the

financial recovery tools, New Zealand Clearing Limited and New Zealand Depository Limited

wish to provide notice of amendments to the Clearing and Settlement Rules and Procedures,

and Depository Operating Rules.


New Zealand Clearing Limited therefore provides notice for the purposes of rule 8.5 of

amendments to the Clearing and Settlement Rules and Procedures. New Zealand Depository

Limited also provides notice for the purposes of rule 9.6 of amendments to the Depository

Operating Rules. These changes have not been disallowed by the Financial Markets Authority

and Reserve Bank of New Zealand under the Banking (Prudential Supervision) Act 1989. The

amendments will take effect from 1 December 2023.


A marked-up copy of the amendments to the Rules and Procedures described above is

available on the Upcoming Rule Changes page on nzx.com.


For further information please contact:


Media and investors – Simon Beattie – 021 702 694

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