Frequently Asked Questions

Q: How do I become an NZX Clearing Participant?

A: Please contact NZX Markets Development on +64 4 495 2807 or for information on how to become an NZX Clearing or Depository Participant.

Q: What is NZX's settlement cycle for all cash on-market trades?

A: On 7 March 2016 NZX successfully transitioned to T+2 settlement cycle. This ensured that NZX matches international best practice in this area, and specifically maintains alignment across New Zealand and Australia's capital markets as well as the broader Asia Pacific region.

Q: What are the daily processes for NZX Clearing?

A: Outlined below are NZX Clearing's key daily processes and deadlines:

Daily Process


Morning margin recalculation


SOD Daily NZD Cash Funding Opens


Cash and Derivatives Market margin calls due


MTM for Derivatives settlement


Provisional Fails Settlement Batch


Provisional Settlement Batch


Intraday margin recalculation


Intraday margin recalculation


Final Settlement Batch


Intraday margin recalculation


Final Fail Settlement Batch


EOD NZD cash funding commences


NZ Clear cash cut-off


Derivatives EOD margin recalculation and MTM settlement obligation calculation


EOD Derivatives margin call


EOD Cash Market margin call

Q: Who do I contact if I have a query about NZX's Clearing & Depository rules & Procedures?

A: Please contact NZX's Participant Compliance team on +64 4 498 2279 or

Q: Where can I find information about NZX Clearing's fees?

A: Please see NZX Clearing's current Fee Schedule or contact NZX Markets Development at for more information.

NZX Clearing Participant Fee Schedule

Q: How does NZX Clearing provide connectivity to its Participants?

A: NZX Clearing provides Participants connectivity via a 15022 messaging interface available via TCP/IP or the SWIFT network. The BANCS system is also accessible via a web user interface via a VPN (virtual private network) connection.

Q: Where can I find NZX Clearing's message specification document?

A: The message specification document is available on request from

Q: What interoperability is available with NZClear?

A: NZX Clearing provides a real time electronic lodge/uplift process between NZClear and the NZX Clearing Securities Depository. These transfers are actioned real-time via 15022 messaging over the SWIFT network.

Q: Who regulates NZX Clearing?

A: As a designated settlement system NZX Clearing is subject to joint oversight by the Reserve Bank of New Zealand (RBNZ) and the Financial Markets Authority (FMA).

Q: Who are NZX Clearing's approved settlement banks?

A: For all New Zealand dollar settlements, the NZX Clearing Designated Settlement System (NZCDC) is a Participant of the RBNZ's Real Time Gross Settlement System ('ESAS') and maintains an account at the Reserve Bank.

For more information, please email

Risk FAQs

Q: What consists of “eligible collateral"?

A: NZX Clearing allows approved classes of securities in addition to cash to be used to meet margin obligations. Please refer to Clearing & Settlement Rule 3.13.1 and Clearing & Settlement Procedures 3.18, 3.19 and 3.20 for further detail.

Securities held as collateral are subject to a 30% haircut. Further to this, Participants must at all times hold a minimum of 30% of total margin in cash. Please contact for further details on securities eligible to be held as collateral.

Derivative Clearing Participants must provide cash for meeting the variation margin on all derivative products. In observance of the PFMI, NZX Clearing does not accept Bank Guarantees as collateral. Please note collateral must be denominated in the same currency as the product being collateralized.

Please refer to the Clearing and Settlement Procedures for current eligible collateral and haircut rates or contact

Q: When will intraday margin requirements be calculated on my positions?

A: Clearing & Settlement Rule 3.16 states NZX Clearing may, at any time, recalculate margin and require any Clearing Participant to provide eligible collateral within a timeframe specified in the margin call notification. In line with global market practice, NZX Clearing may make three types of intraday margin calculations:

• Routine – the Clearing House will calculate intraday margin at a specified time/s each day;

• Auto-triggering – the Clearing House will calculate intraday margin when a pre-defined event or specified limit is exceeded;

• Ad-Hoc – the Clearing House will calculate intraday margin in addition to auto-triggered events and/or routine margin calls.

If the intraday margin calculation indicates that a Participant is significantly lacking margin, a margin call will be issued.

Q: What circumstances might trigger an intraday margin call on my account?

A: Circumstances that trigger an intraday margin call include a significant rise in exposure, price volatility and/or other unusual market conditions.

Q: What are the collateral delivery deadlines to meet intraday margin calls issued by the Clearing House?

A: Participants are required to meet their margin requirements at the earliest possible time within the time period specified by NZX Clearing. This time is specified in the intraday margin call notification, sent to the Participant via email. The collateral delivery deadline is typically specified as no later than 2 hours after the notification is sent.

Q: What pricing models does the Clearing House implement for the calculation of Daily settlement prices for Options?

A: For Options on Dairy Futures, NZX Clearing implements the Black (1976) option pricing model.For the theoretical premium of Exchange Traded Equity Options, the Clearing House implements the Cox Ross Rubinstein option-pricing model.

Q: Where can I learn more about SPAN©?

A: Further details about SPAN© can be found by visiting the Chicago MercantileExchange website at: