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Rules and Regulation
Regulation
The NZCDC Settlement System ("Settlement System") is a designated settlement system under the Financial Markets Infrastructures Act 2021. The Settlement System is regulated jointly by the Reserve Bank of New Zealand and the Financial Markets Authority.
Rules
A designated settlement system is required to have, amongst other things, rules that govern the operation of the system, and those persons that interact with the system. For the NZCDC Settlement System, these rules comprise NZC's Clearing and Settlement Rules ("C&S Rules"), and NZD's Depository Operating Rules ("DO Rules"). Each Rule set also has a related set of Procedures.
You can download a copy of the current Rules and Procedures here.
NZX Clearing PFMI Self-Assessment
NZCDC perform a self-assessment against Committee on Payment and Settlement Systems and International Organisation of Securities Commission's Principles for Financial Market Infrastructures. Copies of the self-assessments can be found here
ESMA Third Country Trading Venue Assessment
The European Securities and Markets Authority (ESMA), recognizes New Zealand Clearing Limited as a third-country CCP for the purposes of Article 25 of EMIR.
On 3 October 2020, the European MiFiDII/MIFIR requirements will introduce a new position limit regime and post trade transparency reporting regime. On 4 June 2020, ESMA published its assessment of NZX as a trading venue for the purposes of these requirements. ESMA’s assessment is available here.
Position Limits
ESMA has not included NZX on the list of third country trading venues for the purposes of the new position limit requirements. This means that trades of commodity derivatives on NZX should be treated as OTC trades for the purposes of the position limit regime.
Post Trade Transparency
ESMA has included NZX in the list of third country trading venues which have a suitable post trade transparency regime, for all products traded on our markets. This means that EU investment firms will not be required to republish information in the EU about transactions on NZX under the new trade reporting requirements that take effect in October 2020.