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Standards for designated financial market infrastructures (FMIs)

Standards for designated FMIs were issued on 27 July 2023. The Standards come into effect starting from 1 March 2024.

Standards for designated FMIs overview

FMIs are multilateral systems that provide clearing, settling or recording services in relation to payments and transactions involving financial products. There are several types of FMIs, including payment systems, securities settlement systems, central securities depositories and central counterparties.

The Standards for designated FMIs were issued on 27 July 2023 under section 31 of the Financial Market Infrastructures Act 2021 (the FMI Act) by the Reserve Bank of New Zealand and the Financial Markets Authority acting jointly as the regulator under the FMI Act. The Standards come into effect starting from 1 March 2024.

Read the Financial Market Infrastructures Act 2021

Table 1 details how the Standards apply to the different classes of FMIs and has links to guidance materials.

The Standards and related guidance are based on the relevant international standards — the Principles for Financial Market Infrastructures (PFMI) — but adapted to align with New Zealand legal norms and the New Zealand operating environment for designated FMIs.

Read the Principles for Financial Market Infrastructures (PFMI) (PDF, 1.06MB)

Table 1: Standards and related materials for designated Financial Market Infrastructures (FMIs)

FMI Standards (PDF, 4.45MB)

Guidance for FMI Standards (PDF, 925KB)

Guidance Note: Overseas FMIs (equivalence framework) (PDF, 169KB)

Classes of FMI
Standard Payment system Centralised securities depository Securities settlement system Central counterparty Equivalent overseas FMI
Standard 1: Legal basis (PDF, 197KB)

Guidance (PDF, 925KB)
Standard 2: Governance (PDF, 162KB)

Guidance (PDF, 925KB)
Standard 3: Framework for the comprehensive management of risks (PDF, 168KB)

Guidance (PDF, 925KB)
Standard 4: Credit risk (PDF, 180KB)

Guidance (PDF, 925KB)
Standard 5: Collateral (PDF, 159KB)

Guidance (PDF, 925KB)
Standard 6: Margin (PDF, 167KB)

Guidance (PDF, 925KB)
Standard 7: Liquidity risk (PDF, 175KB)

Guidance (PDF, 925KB)
Standard 8: Settlement finality (PDF, 116KB)

Guidance (PDF, 925KB)
Standard 9: Money settlements (PDF, 168KB)

Guidance (PDF, 925KB)
Standard 10: Physical deliveries (PDF, 161KB)

Guidance (PDF, 925KB)
Standard 11: Central securities depositories (PDF, 165KB)

Guidance (PDF, 925KB)
Standard 12: Exchange-of-value settlement systems (PDF, 116KB)

Guidance (PDF, 925KB)
Standard 13: Participant-default rules and procedures (PDF, 165KB)

Guidance (PDF, 925KB)
Standard 14: Segregation and portability (PDF, 167KB)

Guidance (PDF, 925KB)
Standard 15: General business risk (PDF, 174KB)

Guidance (PDF, 925KB)
Standard 16: Custody and investment risks (PDF, 166KB)

Guidance (PDF, 925KB)
Standard 17: Operational risk (PDF, 179KB)

Guidance (PDF, 925KB)
Standard 17A: Contingency plans (PDF, 165KB)

Guidance (PDF, 925KB)
Standard 17B: Critical service providers (PDF, 167KB)

Guidance (PDF, 925KB)
Standard 17C: Cyber resilience (PDF, 179KB)

Guidance (PDF, 925KB)
Standard 18: Access and participation requirements (PDF, 172KB)

Guidance (PDF, 925KB)
Standard 19: Tiered participation arrangements (PDF, 166KB)

Guidance (PDF, 925KB)
Standard 20: FMI links (PDF, 150KB)

Guidance (PDF, 925KB)
Standard 21: Efficiency and effectiveness (PDF, 163KB)

Guidance (PDF, 925KB)
Standard 22: Communication procedures and standards (PDF, 115KB)

Guidance (PDF, 925KB)
Standard 23: Disclosure of rules, key procedures, and market data (PDF, 162KB)

Guidance (PDF, 925KB)
Standard 23A: Disclosing compliance with the FMI Standards (PDF, 190KB)

Guidance (PDF, 925KB)
Standard 23B: Notifying the regulator (PDF, 173KB)

Guidance (PDF, 925KB)

 

FMIs are designated because they are determined to be systemically important by the regulator or because they apply for designation status.