The (NZX) announced this Tuesday that BNP Paribas Securities Services is planning on using the Kiwi exchange for a new initiative which will focus on increasing the country’s capital markets.
In particular, BNP Paribas is planning on increasing offshore capital flows into the NZX, which will further develop New Zealand’s capital market. As part of this, BNP Paribas is working on becoming a General Clearing Participant, which is anticipated to be finished in the first half of 2021, according to NZX Chief Executive, Mark Peterson.
NZX: significant untapped potential in New Zealand
Once BNP Paribas completes the process of becoming a General Clearing Participant, NZX believes the bank will enhance operational efficiencies when bringing its Third Party Clearing (TPC) model to the country.
Source: LinkedIn
A TPC model allows brokers to streamline their clearing and settlement processes, as BNP Paribas would manage the operational, regulatory and IT requirements. Therefore, brokers would be able to focus on other areas of their business.
By bringing its TPC model, NZX expects this will benefit brokers further by offering a solution for managing large trading volumes, reducing capital outlay of connecting to NZX’s market and more.
BNP Paribas in New Zealand
BNP Paribas was the first and only global custodian to become a Depository Participant on the NZX Clearing and Settlement System. Furthermore, the was the first custodian to go live with STP announcements (ISO15022) on NZX.
Commenting on the initiative, NZX Executive Director for Markets Development & Clearing, Benjamin Phillips added in the statement: “In BNP Paribas, we have a participant with a genuine commitment to the ongoing development of New Zealand’s capital markets, now partnering with us to develop new models and processes to drive operational efficiencies and mutual benefits for the market, investors and issuers.”
Be First to Comment