The Clearing House operates under a central counter-party model. It offers clearing and risk management services for NZX's Markets, covering cash equity and debt products as well as derivatives. The Clearing House is an essential piece of capital market infrastructure.
The Central Securities Depository ("Depository") provides securities safe keeping services, stock lending and borrowing, and settlement of transactions between participants. In addition, trades executed on NZX Markets are settled in settlement accounts held in the Depository.
New Zealand Clearing and Depository Corporation Limited ("NZCDC") is a wholly owned subsidiary of NZX Limited. It operates through New Zealand Clearing Limited ("NZCL"), which operates the Clearing House and through the New Zealand Depository Limited ("NZDL") which operates the Depository.
A nominee company, New Zealand Depository Nominee Limited ("Nominee"), a wholly owned subsidiary of NZDL, acts solely as a bare trustee and holds legal title to securities and cash held in the Depository.
The NZCDC Board of Directors ("Board") is separate from the NZX Limited Board, and comprises a minimum of three Directors with an independent Chair. The NZCDC Board is responsible for overall governance of the NZCC Group.