The Hugo Group

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Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Bill

Introduced on Feb 19, 2019. An omnibus Bill amending the law in relation to the linkages between NZ’s financial markets and international financial markets, in particular through derivatives markets. NZ law is currently out of kilter with new rules being implemented across the G20 which require parties to certain types of derivatives to exchange collateral. The purpose of the Bill is to enable NZ financial market participants to comply with these and other international rules and to continue to enter into derivatives and other financial instruments with overseas financial entities. It also establishes a new licensing regime for administrators of financial benchmarks under the Financial Markets Conduct Act. First reading completed on March 7 with all parties in agreement and sent to the Finance and Expenditure Committee with a July 22 report back. Reported back on July 2 with a small number of technical changes.Second reading completed on July 30 with all parties in agreement. Committee stage completed on Aug 20 and third reading on Aug 27 all parties in support.
Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Bill