Administrators of financial benchmarks
On 30 August 2019 the Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 received Royal assent. The Act introduces a licensing regime for administrators of financial benchmarks.
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A new opt-in licensing regime
A new opt-in licensing regime for New Zealand administrators of financial benchmarks was introduced under the Financial Markets Conduct Act 2013. This regime is designed to provide additional assurance around the accuracy, integrity, reliability and continuity of New Zealand’s benchmarks and to ensure continued access for New Zealand benchmarks to EU financial markets once new regulations are in force.
The EU regulations will set standards around the processes for setting financial benchmarks, and for recognising and using third country benchmarks in the EU. They were planned to take full effect on 1 January 2022 but this has now been delayed to 1 January 2024. If the regulations go ahead as planned, New Zealand’s regulatory regime for benchmarks will need to meet the EU standards in order for New Zealand benchmarks to be used in critical financial contracts with EU counterparties.
The Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 received Royal assent on 30 August 2019 and introduced the licensing framework for financial benchmark administrators.
Visit the NZ Parliament website to view the history of the Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019.
New Zealand Parliament(external link)
Regulations, which set out detail of the eligibility criteria and licence conditions for benchmark administrators, have been made.
The new regulatory regime for benchmark administrators came into force on 15 March 2021.
Read the documents behind the policy decisions: