Omnibus financial market bill introduced
Commerce and Consumer Affairs Minister Kris Faafoi has introduced the Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Bill to Parliament.
The purpose of the bill is to enable New Zealand financial market participants to comply with international rules and therefore to continue to enter into derivatives and certain other types of financial instruments with important overseas financial entities.
The bill is an omnibus bill and amends a number of Acts.
Amendments to a number of Acts are aimed at removing impediments to compliance with foreign margin requirements for over-the-counter derivatives. The intention is to allow relevant New Zealand entities to continue to enter into certain types of derivatives with international counterparties, in order to continue to effectively hedge the foreign currency risk associated with overseas funding programmes.
The bill also establishes a new licensing regime for administrators of financial benchmarks under the Financial Markets Conduct Act 2013. This is aimed at enabling those benchmarks to be referenced in financial instruments (particularly derivatives) with important international counterparties.
Last updated on the 16th September 2019