Staff Reporter –
The country’s Central Bank has called for expression of interest from eligible companies for purchase of ‘NZClear,’ which looks after security settlement and depository business.
Thus far, the Reserve Bank of New Zealand has not been able to find a suitable organisation to take over the business and hence has decided to go through public tender.
Reserve Bank of New Zealand Deputy Governor and Head of Operations Geoff Bascand said that the NZClear is the technology behind a key piece of New Zealand’s financial infrastructure and that it requires significant investment or replacement.
“The Reserve Bank has owned and operated NZClear for 25 years since it led the innovation to move from manual processes to electronic services. We believe that market solutions are now available and that they offer potential for further development and innovation,” he said.
Non-Core Business
A strategic review of Reserve Bank’s payment and settlement system in 2014 said that securities settlement is not its core business.
According to Mr Bascand, the Bank is keen to have in place another specialist operator providing securities settlement and depository services that meet its requirements and those of the market.
NZClear members are important stakeholders, and hence we intend to provide regular briefings as this process evolves. The Bank is committed to ensuring that the needs of the NZClear customers are met and that high services standards are maintained.
“While the Bank has a preference to see a new provider of NZClear services, we have been exploring system replacement solutions, in the event we are unable to find a suitable alternative provider,” Mr Bascand said.
“Our earlier Request for Information for Payment and Settlement Systems confirmed our view that a range of systems are available that would potentially meet the Bank’s requirement, if needed,” he added.
The last date for receipt of expressions of interest at RBNZ is June 23, 2015.
Documentation is available through the Government Electronic Tenders Service (GETS).
