Why we provide NZClear accounts
NZClear provides the financial markets with clearing and settlement services for high-value debt securities and equities.
Who can apply for NZClear access?
Membership of NZClear is presently restricted to entities involved in securities markets.
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:
- hold a certificate of exemption from resident withholding tax, or
- in the case of participants who are not resident in New Zealand for tax purposes, only be permitted to hold in NZClear fixed interest securities issued by either the New Zealand Government, Local Government Funding Authority, Housing New Zealand (HNZL) securities or the Reserve Bank of New Zealand (with the issuer paying the approved issuer levy on non-resident withholding income).
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:
- operational capacity, including its ability and readiness to use the system and network we provide
- financial condition including capital and creditworthiness
- risk management expertise
- business continuity arrangements
- character and business integrity
- legal requirements including whether it holds all required licences and authorisations
- tax status (including holding of a certificate of exemption from resident withholding tax)
- any other considerations that, in the system operator's opinion, relate to the applicant's standing and the system's integrity.
Participants' rights and obligations to each other and our rights and obligations as the system operator are governed by NZClear rules.
Fees for using NZClear
The latest NZClear fee schedule is available in our operational documents section.
NZClear Rules
Any new NZClear participants would be subject to the same NZClear rules as existing NZClear participants.