How NZClear operates
The system is charged with providing an efficient and safe process for the electronic transfer and safekeeping of securities. NZClear has been operating in New Zealand since 1990 and is used primarily for settling transactions of fixed interest securities and equity securities on a delivery versus payment basis.
NZClear has registry electronic interfaces with both Computershare and MUFG Corporate Markets. 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.