Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 6

Convergence of Securities Systems, both within countries and across borders, should be encouraged where this eliminates operational risk, reduces cost and enhances market efficiency.

1.	Is the depository linked electronically and in real time with other segments of the core market infrastructure (e.g. trading platforms, netting systems, matching platforms, payment systems)?	Yes. The FASTER system operated by the NZSE connects the FASTER Trading, the payments the various Registry and Direct Participant systems in real-time. NZCSD does not have real-time links to other market infrastructure elements.
2.	Is there one or more depository or settlement system in the market?	Yes, there are two systems. The New Zealand Stock Exchange (NZSE) operates the FASTER (Fully Automated Screen Trading and Electronic Registration) system. The New Zealand Central Securities Depository Limited (NZCSD), wholly owned by the central bank, the Reserve Bank of New Zealand, is the only central depository in New Zealand. In addition to FASTER, the market also uses another settlement system called the Austraclear system. Austraclear is operated by the Reserve Bank of New Zealand and is used for settlement and clearing of eligible securities. It is accessible by all members of NZCSD.
3.	If there are several, has a consolidation been considered? If yes, by when?	Yes – the concept is still in the early stages of discussion.
4.	Does (do) the securities system(s) allow other domestic or foreign systems to establish direct links on an equal basis to local members?	FASTER: Yes. NZCSD: No.
5.	Does (do) the securities system(s) allow foreign market participants to become direct participants?	Yes for FASTER and within defined limits. The Austraclear New Zealand System allows foreign participants to settle direct in the New Zealand Market.