RB says not in talks with NZSE over computer system merger

By NZPA

Friday 20th September 2002

The Reserve Bank today said it was not in discussions with the New Zealand Stock Exchange (NZSE) about a computer support system merger but it would consider such a proposal if it was received.

Acting Governor Rod Carr said the Reserve Bank had not discussed the merger or replacement of its Austraclear Depository system with the NZSE or any other party.

"It may be that the Stock Exchange is considering coming to the bank with a proposal and if that is the case we will consider it," he said in a statement.

Yesterday, a document obtained by the Dominion Post showed the exchange had plans to merge its Faster (fully automated screen trading and electronic registration) system for the trading, settlement, and transfer of securities with Austraclear.

NZSE chief executive Mark Weldon confirmed a merger of the settlement system with Austraclear was being considered but said nothing had been communicated to the bank.

The document said the partnership would lower costs, increase security, and provide the industry with a more efficient, fair, open and accessible system.

It could in effect mean the exchange going into partnership with Kiwi IT firm Datacom, which in May signed a lucrative three-year contract with the Reserve Bank to look after Austraclear.

Austraclear supports computer systems that process inter-bank transactions worth tens of millions of dollars each day.

Austraclear has about 230 members with total investments of about $75 billion, as well as the Exchange Settlement Account System.

Austraclear and the Exchange Settlement Account System lie at the heart of the banking system. Until the end of the year, Austraclear New Zealand is a subsidiary owned by the Sydney Futures Exchange.

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