This notice is the Securities Markets Act (NZCDC Settlement System) Exemption Notice 2010.

This notice comes into force on the day after the date of its notification in the Gazette.

This notice expires on the close of 30 November 2015.

(1) In this notice, unless the context otherwise requires,—

(2) Any term or expression that is defined in the Act and used, but not defined, in this notice has the same meaning as in the Act.

(1) NZ Clearing and every person acting on its behalf are exempted from sections 22 to 25 of the Act in respect of any relevant interest in a security that NZ Clearing has as a result of—

• (a) being the central counterparty to a settlement transaction on the clearing house under the C&S Rules; or

• (b) the exercise of its powers and the performance of its functions under the C&S Rules in the ordinary course of its business of operating the clearing house.

(2) Subclause (1) does not apply to any relevant interest in a security (other than a relevant interest arising in respect of collateral) that is not disposed of by NZ Clearing within 10 business days after the date on which the relevant interest in that security was acquired.

NZ Depository and every person acting on its behalf are exempted from sections 22 to 25 of the Act in respect of any relevant interest in a security that NZ Depository has as a result of the exercise of its powers and the performance of its functions under the depository operating rules in the ordinary course of its business of operating the depository.

NZCDC and every person acting on its behalf are exempted from sections 22 to 25 of the Act in respect of any relevant interest that NZCDC has in a security in which either or both of NZ Clearing or NZ Depository also have both—

• (a) a relevant interest; and

• (b) an exemption under clause 5 or 6.

(1) Each specified participant and every person acting on behalf of a specified participant are exempted from sections 22 to 25 of the Act in respect of any relevant interest in a security that the specified participant has as a result of both—

• (a) being a party to a settlement transaction on the clearing house under the C&S Rules; and

• (b) the performance of its functions in connection with that settlement transaction in the ordinary course of its business as a clearing participant under the C&S Rules or as a depository participant under the depository operating rules.

(2) For the purposes of subclause (1), a settlement transaction does not include—

• (a) a settlement transaction arising from trading activities on NZX's markets where the specified participant acquires or disposes of securities or authorised futures contracts on its own behalf; or

• (b) a settlement transaction arising from a securities lending transaction.