Reserve Bank of New Zealand (Designated Settlement System—NZCDC) Amendment Order 2021

2021/34

Coat of Arms of New Zealand

Reserve Bank of New Zealand (Designated Settlement System—NZCDC) Amendment Order 2021

Patsy Reddy, Governor-General

Order in Council

At Wellington this 1st day of March 2021

Present:
The Right Hon Jacinda Ardern presiding in Council

This order is made under section 156ZD of the Reserve Bank of New Zealand Act 1989

(a)

on the advice and with the consent of the Executive Council; and

(b)

on the advice of the Minister of Finance and the Minister of Commerce and Consumer Affairs given in accordance with a joint recommendation of the Reserve Bank of New Zealand and the Financial Markets Authority made in accordance with sections 156ZI and 156ZJ of that Act.

Order

1 Title

This order is the Reserve Bank of New Zealand (Designated Settlement System—NZCDC) Amendment Order 2021.

2 Commencement

This order comes into force on 8 March 2021.

3 Principal order
4 Clause 3 amended (Interpretation)

(1)

In clause 3, insert in its appropriate alphabetical order:

NZX RegCo means NZX Regulation Limited, a wholly owned subsidiary of NZX Limited

(2)

In clause 3, definition of NZCDC settlement system, after paragraph (f), insert:

(g)

the provision of regulatory oversight services by NZX RegCo

(3)

In clause 3, definition of NZX Limited Group, after “NZX Limited,”, insert “NZX RegCo,”.

5 Schedule amended

(1)

In the Schedule, clause 1(e)(v)(B), after “NZX Limited”, insert “or NZX RegCo”.

(2)

In the Schedule, clause 1(e)(vii), after “operator”, insert “or NZX RegCo”.

(3)

In the Schedule, after clause 1(e)(vii), insert:

(viia)

to the chief executive officer of NZX RegCo; or

(4)

In the Schedule, replace clause 1(e)(ix) with:

(ix)

of senior managers of NZX Limited who have responsibilities for the provision of technology infrastructure and services to the NZCDC settlement system; or

(5)

In the Schedule, replace clause 1(e)(xi) with:

(xi)

of an independent member of the Clearing Committee of the NZX Limited board; or

(6)

In the Schedule, clause 1(f), after “system operator’s”, insert “, or NZX RegCo’s,”.

(7)

In the Schedule, clause 2, definition of specified agreements, replace paragraph (a) with:

(a)

the agreement between NZCDC, NZ Clearing, NZ Depository, NZX RegCo, and NZX Limited dated 10 December 2020 that relates to—

(i)

the provision of infrastructure and services by NZX Limited to NZCDC, NZ Clearing, and NZ Depository; and

(ii)

the provision of regulatory oversight services by NZX RegCo to NZCDC, NZ Clearing, and NZ Depository; and

(iii)

insurance arrangements; and

(8)

In the Schedule, clause 2, definition of specified agreements, revoke paragraphs (d) and (e).

(9)

In the Schedule, clause 2, definition of specified governance document, paragraphs (c), (d), and (e), replace “terms of reference” with “charter”.

(10)

In the Schedule, clause 2, definition of specified governance document, replace paragraphs (g) and (h) with:

(g)

the NZX RegCo board charter:

(11)

In the Schedule, clause 2, definition of specified governance document, replace paragraph (k) with:

(k)

the NZX delegated authority policy:

Michael Webster,
Clerk of the Executive Council.

Explanatory note

This note is not part of the order, but is intended to indicate its general effect.

This order, which comes into force on 8 March 2021, amends the Reserve Bank of New Zealand (Designated Settlement System—NZCDC) Order 2010 (the principal order). The principal order declares the NZCDC settlement system to be a designated settlement system under Part 5C of the Reserve Bank of New Zealand Act 1989. The amendments made by this order reflect structural changes to NZX Limited’s regulatory oversight arrangements, in particular, the establishment of NZX Regulation Limited (NZX RegCo). The amendments include—

  • defining NZX RegCo as a wholly owned subsidiary of NZX Limited:

  • requiring that the NZCDC contact person notifies the joint regulators of changes to NZX RegCo:

  • changing the definition of NZCDC settlement system to include the provision of regulatory services by NZX RegCo.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 4 March 2021.

This order is administered by the Reserve Bank of New Zealand.