Market infrastructure - New Zealand

Institutions and organisation

Stock Exchanges and related institutions

• NZX Limited (NZX)
  
  The New Zealand Stock Exchange, New Zealand's only stock exchange, was demutualised in 2002. It changed its name to NZX Limited (NZX) and started its public listing (on the NZX's own share market) in 2003.
  The NZX lists shares, warrants and debt securities (including New Zealand Government securities) on four separate markets: NZSX (New Zealand Stock Market), NXT (market for small and mid-sized businesses), NZDX (New Zealand Debt Market) and NZAX (New Zealand Alternative Market).
  The NZX operates an automated trading platform (NZX Trade) and which has been upgraded to an API-first architecture , delivering real time REST and Websocket endpoints and reducing average order to execution latency, as well as the NZ Clearing and Depository Corporation Limited, a wholly-owned NZX subsidiary providing central counterparty and settlement services.

CSD

• New Zealand Central Securities Depository Limited (NZCSD)
  
  The Reserve Bank of New Zealand (RBNZ), New Zealand's central bank, owns the New Zealand Central Securities Depository Limited (NZCSD), a central depository for NZX-listed and for eligible unlisted debt and equity instruments. The NZCSD operates an RTGS (real-time gross settlement) platform named NZClear. Securities are transferred on a gross basis between NZCSD accounts throughout the day. The cash component of against payment transactions settles through RBNZ's ESAS (Exchange Settlement Account System) payment platform at the same time as the corresponding securities transfer within the NZCSD. Positions deposited in the NZCSD are dematerialised and automatically registered in NZCSD's name with the underlying registrar.
• New Zealand Clearing and Depository Corporation Limited (NZCDC)
  
  NZCDC was launched on 6 September 2010, providing central counterparty, settlement and depository services in direct competition to the NZCSD's NZClear. All trades executed on the NZX are settled in the NZCDC and securities can be uplifted and lodged to the NZCSD for delivery through NZClear via process called Shunting. This is a reciprocal process between NZClear and NZX.

Central Bank/Regulators

• The Reserve Bank of New Zealand (RBNZ)
  
  RBNZ operates under the Reserve Bank of New Zealand Act 1989. Although fully owned by the Government of New Zealand, RBNZ is not a conventional Government department or state agency. Pursuant to its statutory powers and obligations RBNZ enjoys a large autonomy in defining the country's monetary policy. RBNZ operates the ESAS real-time gross payment system.
• Financial Markets Authority (FMA)
  
  The Financial Markets Authority (FMA) is New Zealand’s principal regulator of the financial markets. It licences securities dealers, monitors market conduct, and enforces the Financial Markets Conduct Act 2013 (including securities‑related provisions of the Companies Act 1993). The FMA also oversees financial‑reporting standards for listed entities under the Financial Reporting Act 2013. While the Companies Office remains the primary administrator of general company law, the FMA’s oversight is limited to the securities‑related aspects of that legislation. Recent FMA initiatives include a Sustainable Finance Charter, an enhanced AML/CFT supervisory framework, and a 2023‑2028 enforcement strategy focused on market integrity and climate‑risk disclosure.
• Overseas Investment Office (OIO)
   

  The Overseas Investment Office (OIO), a business‑unit of the Ministry of Business, Innovation & Employment (MBIE), administers New Zealand’s foreign‑investment framework under the Overseas Investment Act 2005. Its core function is to assess consent applications from overseas investors who wish to make substantial New Zealand investments. The OIO makes final decisions on the vast majority of applications, processing them through its online portal (OIO Online).

  Certain proposals—specifically those involving the acquisition of land that meets “high‑value” or cultural‑sensitivity criteria, and those seeking fishing quota or other marine assets—must be approved by the appropriate Government Minister (e.g., the Minister of Foreign Affairs and Trade or the Minister of Finance).

Regulatory structure

Regulations

New Zealand's securities laws and regulations are embodied in the following (non-exhaustive list):

• Financial Markets Authority Act 2011;
• Securities Act 1978;
• Securities Markets Act 1988;
• Financial Reporting Act 1993;
• Financial Advisers Act 2008;
• Anti-Money Laundering and Countering Financing of Terrorism Act 2009.

Details of the laws and regulations referred to are available on the website operated by the Parliamentary Counsel Office, New Zealand's law drafting office.

Supervision of Stock Exchanges

The FMA has primary supervisory responsibility, approves market rules and undertakes an annual review of the NZX.

Supervision of broker/dealers

1. Securities dealers (including share‑brokers) – must hold a Financial Markets Authority dealer licence (or a financial‑adviser licence where appropriate) under the Financial Markets Conduct Act 2013.
2. Trading banks – must obtain a banking licence from the Reserve Bank of New Zealand and are subject to the RBNZ’s ongoing prudential supervision.
3. NZX market participants – are required to comply with the NZX Participant Rules (including the Listing Rules, Trading Rules and Market‑Surveillance requirements).

Insider trading legislation

Insider‑trading and market‑misconduct law in New Zealand is primarily set out in Part 4 of the Financial Markets Conduct Act 2013 (and the associated 2013 Regulations). The Financial Markets Authority (FMA) is the regulator that oversees and enforces these provisions, investigating insider dealing, market manipulation, false or misleading statements, and other dealing‑misconduct offences.