Resilient capital markets

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 New Zealand’s financial markets are well-functioning and well-regulated. The New Zealand Stock Exchange (NZX) manages several markets that SIA members trade and advise on:
  • NZX Main Board (NZSX): the main equities market where New Zealand’s most recognised brands and companies are listed.
  • NZX's Debt Market NZDX: a market designed to develop existing debt facilities by offering a range of corporate and government bonds and fixed income securities.
  • NZX Equity Derivatives (NZCX): a market that offers domestic and international investors tools to manage and gain exposure to the New Zealand's capital markets and offers index futures contracts and Exchange Traded Options (ETO’s) on Spark, Fletcher Building and Trade Me ordinary shares.
  • SGX-NZX Dairy Derivatives Market: this market provides tools to assist participants to mitigate the risks associated with movements in the price of dairy products and provides the dairy industry with a forward view of dairy prices and a cash settled instrument for managing price risk. NZX offers futures and options contracts for all levels of market participants from New Zealand farmers through to the international buyer of dairy commodities.​
  • Fonterra Shareholders' Market (FSM): this is a private market where only Fonterra Farmer Shareholders, Fonterra and a specially appointed market maker are allowed to trade Fonterra Shares. However, investors can invest in the Fonterra Shareholders’ Fund listed on the NZX Main Board.
For more information about the NZX visit nzx.com

World-class clearing and settlement systems
Securities transactions undertaken by member firms on the NZX are supported by two designated settlement systems that provide stable infrastructure for New Zealand's financial markets. Both systems are jointly regulated by the FMA and Reserve Bank of New Zealand.
  • NZClear, owned and operated by the Reserve Bank of New Zealand, is the securities settlement system and central securities depository for a range of fixed interest securities and equities issued in New Zealand. 
  • NZX Clearing (NZC), operated by NZX, clears and settles all transactions that are conducted on NZX markets. Once a trade is executed on an NZX market, NZC becomes the central counterparty to both the buy and sell side of the trade. The efficiencies and integrity of this settlement system allow clearing Participants to net the entirety of their buy and sell trades across each day, regardless of the range of counterparties involved, and as a central counterparty clearer, NZC guarantees delivery of cash and securities. 

Highly-regulated financial markets
​New Zealand is fortunate to have highly-regulated financial markets and a well-managed industry. Member firms are regulated by:
  • Financial Markets Authority (FMA),  a Crown entity that promotes and facilitates the development of fair, efficient, and transparent financial markets.  The FMA oversees New Zealand's financial markets and monitors compliance with and enforces laws relating to financial markets, products and  services.  Finacial Advice Providers and Financial Advisers are authorised by the FMA and must comply with the Code of Professional Conduct for Financial Advice Services as well as laws relating to the provision of financial advice. For more information visit FMA
  • New Zealand Exchange (NZX), a licensed operator of securities markets and regulates both issuers of securities that are listed on its markets and Market Participant firms. The FMA has oversight of the NZX; and NZX and FMA work together to ensure appropriate continuous disclosure by listed issuers and the integrity of NZX’s markets. The SIA’s member firms are accredited by NZX and required to adhere to the NZX Participant Rules.  The regulatory arm of NZX also carries out regular inspections of NZX Market Participant firms. For more information visit NZX
  • Reserve Bank of New Zealand (RBNZ), while not a securities regulator, it works with the FMA to oversee some designated settlement systems in New Zealand, including NZClear (which provides clearing and settlement services for high-value debt securities and equities) and the NZCDC Settlement System (which provides clearing, settlement and depositary services in relation to transactions effected on NZX’s markets).​ For more information visit Reserve Bank of New Zealand
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Member firms also have in-house compliance programmes in place to meet their legislative and regulatory responsibilities and to ensure they operate to best practice standards, including monitoring and reporting systems and processes, and compliance education and support for staff.

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Disclaimer: The Securities Industry Association (SIA) is not a registered financial services provider or authorised financial adviser. Information provided on this website is provided for general information only. The SIA and its members do not assume any responsibility for giving financial, legal or other professional advice through this website and disclaims any liability arising from the use of the information on this website. If you require financial, legal or other expert advice you should seek assistance from a professional adviser.  
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