Find out how the NZClear settlement system works and how to apply to be a participant.
NZClear is a real-time settlement system which participants access from their premises.
We operate NZClear in New Zealand to:
Membership of NZClear is presently restricted to entities involved in securities markets.
NZClear currently offers depository, wholesale registry and securities transfer.
We may add new services on request to fill unmet needs if those services are appropriate, contribute to the financial system's soundness and efficiency, and likely to be profitable.
Each NZClear participant has a security account(s) on the system which records the securities they lodge with New Zealand Central Securities Depository Limited (NZCSD). NZCSD is a custodian of the securities and fully owned by us.
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 must have an account provided by an Exchange System Settlement System (ESAS) account holder, usually a registered New Zealand bank. The bank providing the account has real-time access to set daylight limits on that account.
NZClear has electronic interfaces with both Computershare and Link. These allow securities to be lodged into and/or uplifted from NZClear electronically into the relevant securities registry.
NZClear also has an electronic interface with NZX. This allows NZX participants to electronically transfer securities via the NZClear depository (NZCSD) and NZCDC Ltd (NZX — New Zealand Stock Exchange — depository). This enables straight-through processing which in turn reduces operational risk and processing costs.
We will consider an application to become a participant in NZClear from any institution (domestic or foreign) which we believe to be of good standing and with the necessary resources to meet its obligations as a participant.
All participants will generally be required to either:
Participation arrangements are set out in Clause 3 of the NZClear rules. The participant application process raises awareness of the risks a participant may pose to the NZClear system. An applicant must satisfy us it can meet its present and future obligations including in terms of its:
Participants' rights and obligations to each other and our rights and obligations as the system operator are governed by NZClear rules.
Email the NZClear HelpDesk to get a participants' application pack and we will be in touch.