BNP Paribas and NZX team up to boost offshore capital flows

BNP Paribas Securities Services (BNP Paribas) engaged with NZX on a new initiative for boosting offshore capital flows into NZX to further develop the New Zealand capital market.

NZX Chief Executive, Mark Peterson, announced that BNP Paribas is working towards becoming a General Clearing Participant which is expected to happen within the first half of 2021. One of the Exchange’s key strategic goals is supporting the long-term health of New Zealand’s capital markets eco-system.

Mark Peterson commented:

Mark Peterson, NZX

Mark Peterson

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.

BNP Paribas will bring its Third Party Clearing (TPC) model to New Zealand and with it, its technical expertise and will further enhance operational efficiencies. This will open up optionality for direct members with a physical presence in New Zealand, as well as remote brokers to use TPC.

BNP Paribas and NZX team up to boost offshore capital flows

NZX Executive Director for Markets Development & Clearing, Benjamin Phillips said the endorsement is important for the development strategy of NZX and its success as it will attract global participation in the markets and expand capacity and development of more direct connectivity to offshore capital flows.

Phillips also stated that the collaboration will continue to drive liquidity to the New Zealand market eco-system.

Benjamin Phillips said:

Benjamin Phillips, NZX

Benjamin Phillips

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.

Doug Cameron, Head of Location for BNP Paribas Securities Services New Zealand, commented:

Doug Cameron, BNP Paribas

Doug Cameron
Source: LinkedIn

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.

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