New Zealand stock exchange operator NZX Ltd <NZX.NZ> said it will partner with the securities services unit of French investment bank BNP Paribas <BNPP.PA> to shore up offshore capital flows.
BNP Paribas Securities Services will work towards becoming a general clearing participant by the first half of 2021, allowing it to clear and settle transactions for itself and other market participants, NZX said in a statement.
The stock exchange operator said BNP will introduce its third-party clearing model to direct members in New Zealand and remote brokers, offering a cost-effective solution for managing large trading volumes.
Benjamin Phillips, NZX executive director for markets development & clearing, said the partnership was "an important endorsement of NZX's markets development strategy and its success in attracting wider participation by global participants."
(Reporting by Arpit Nayak in Bengaluru; Editing by Matthew Lewis)
