SWIFT today announced that the New Zealand Exchange (NZX) has selected SWIFT for its clearing and settlement messaging.
The decision to adopt international standards for its messaging coincides with the intention of NZX to replace its legacy equities and debt settlement system with a new Central Counterparty Clearing House and a new Central Securities Depository.
The changes will mean NZX will offer its markets a solution that satisfies both domestic and international requirements by using standardised messaging across one of the most secure and highly resilient financial networks, SWIFNet.
The NZX joins 78 other Securities Market Infrastructures already connected to SWIFT in more than 48 countries.
Announcing details, the Head IT Projects for NZX, Mr Martyn Bain, said “SWIFT was selected as the NZX’s primary messaging platform because of its business value, proven technical excellence and customer reach.”
“SWIFT allows banks and financial institutions to efficiently communicate with each other in a highly automated manner,” he said.
According to Mr Bain, the selection of SWIFT by the NZX was also due to:
- NZX is changing its settlement arrangements for equities and debt products to use central bank funds and so it needs to efficiently interface with the Reserve Bank of New Zealand;
- A subsidiary of NZX, TZ1, has been named as a global registry for voluntary carbon emissions units and wishes to provide STP services to banks and other financial institutions globally; and
- TZ1 needs to interface with commercial banks for a variety of currencies to allow DvP settlement of emissions contracts.
In each of these initiatives the intention of the NZX is to use SWIFTNet FIN messaging (or commonly known as MT), applying ISO15022 standards, but with an interest in moving to MX (XML) using ISO20022 standards as and when appropriate.
Charles Legrand, Head of South Asia for SWIFT, said “We are very pleased the NZX has recognised the value of SWIFT for cost savings, interoperability, greater STP and enhanced security and resiliency.”
“Its decision, together with similar market infrastructure developments in the Asia-Pacific region, is tangible proof that SWIFT can bring significant value to securities markets. SWIFT is committed to providing that capability,” he said.
He said “that New Zealand will become the first market in Asia Pacific to have all its domestic payment and securities market infrastructures (RBNZ, NZCSD, NZX) accessible via SWIFT’s international standards.”
TATA as the application provider has been selected as the vendor to develop the new middle-tier system that will link with the SWIFT network.
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Note to Editors:
About SWIFT
SWIFT is a member-owned cooperative that provides the communications platform, products and services to connect over 8,300 banking organisations, securities institutions and corporate customers in more than 208 countries. SWIFT enables its users to exchange automated, standardised financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. SWIFT also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest.
For more information about this press release, please refer to our website: www.swift.com or contact:
Jennifer Shay
Upstream Asia
T: +852 2973 0222
E: Jennifer.shay@upstreamasia.com
About NZX
NZX is an infrastructure, information and service provider right across the market spectrum. In the last two years the NZX Group has expanded and diversified with the acquisition of businesses and strategic investments aligned with core business purpose, which is to contribute to the New Zealand economy by fostering and leading the development of healthy capital markets and their associated infrastructure.
For more information please contact:
Lucinda McFadden
New Zealand Exchange Limited
T: +64 4 496 2890
M: +64 (0) 275 127 832
E: lucy.mcfadden@nzx.com