NZClear

NZClear is a real-time settlement system which members access from their premises.

Each participant has a security account(s) on the system which records the securities "lodged with New Zealand Central Securities Depository Limited" (NZCSD), a custodian, fully owned by the RBNZ. NZCSD becomes the legal owner of the securities on the relevant register and holds securities on behalf of the participant, the beneficial owner.

Each participant has to have an account which is provided by an ESAS account holder, generally a registered New Zealand bank. The bank providing a system cash account has real-time access to set daylight limits on that account.

NZClear has electronic interfaces with both Computershare and Link which allow entries of securities lodges to and securities uplifts from NZClear to electronically effect the necessary movement of securities in the relevant securities registry.

It also has an electronic interface with NZX to allow NZX participants to electronically transfer securities via the NZClear Depository (NZCSD ltd) and NZCDC Ltd (NZX Depository). This functionality enhances straight through processing reducing operational risk and processing costs.