New law reforms regulation of financial market infrastructures
MR No. 2021 – 19
New laws to regulate and supervise payment and settlement systems have been passed by Parliament following the third reading of the Financial Market Infrastructures Bill (the Bill) yesterday.
FMIs are critical systems that support day-to-day payments and financial transactions in the economy. They include electronic payment systems, and systems to settle trades in a range of financial products, such as equities and bonds. These systems are mostly used by banks and other financial institutions, but payment systems are also used by individuals, retailers, and other businesses.
Under the Bill the Reserve Bank of New Zealand – Te Pūtea Matua (the Reserve Bank) and the Financial Markets Authority – Te Mana Tātai Hokohoko (FMA) will be joint regulators of most FMIs, including central securities depositories, securities settlement systems, central counterparties, and…