BNP Paribas Securities Services has partnered with New Zealand’s stock exchange (NZX) on a new initiative focused on boosting offshore investment flows and further developing the country’s capital market.
The French custodian is working towards becoming a general clearing participant of the exchange, which is expected to be completed within the first half of 2021.
BNP Paribas will also offer its third-party clearing model to the exchange, providing optionality for direct members with a physical presence in New Zealand or to remote brokers for clearing and settlement services to NZX securities.
“We see this as a hugely positive signal about the untapped potential in our markets. BNP Paribas is a high-quality clearer and custodian, with an unparalleled regional clearing footprint and global credentials, committing its innovation and expertise to New Zealand,” said Mark Peterson, CEO, NZX.
Last year, NZX accredited BNP Paribas Securities Services as the first global custodian to become a depository participant of the NZX Clearing and Settlement System (NZX Clearing) and was the first custodian to go live with straight-through processing (STP) announcements on the exchange.
Over the past few years, BNP Paribas Securities Services has touted the benefits of its third-party clearing service to Asia-Pacific-based brokers, enabling them to outsource the clearing and settlement process in order to alleviate capital and operational pressures.
“We are leveraging the NZX’s platform to offer streamlined, efficient, cost-effective and high-quality operations at a time of increasing global and regional infrastructure demands,” said Doug Cameron, head of location for BNP Paribas Securities Services New Zealand.