The Reserve Bank has launched a new future-proofed payment settlement system, replacing New Zealand’s inter-bank settlement system and central securities depository.
The new platform replaces a 20-year-old system with two separate systems, ESAS 2.0 and NZClear 2.0. The new platform comprises the Real Time Gross Settlement (RTGS) and Central Security Depository (CSD) applications supplied by SIA – a European technology and banking infrastructure leader and its wholly owned subsidiary Perago. Infrastructure support services are supplied by Datacom Systems Limited.
The extent of change is significant, says Assistant Governor/Chief Financial Officer Mike Wolyncewicz.
“Every day, transactions with a value of more than $30 billion are settled, so there has been a focus on getting this right, and not rushing out a replacement until we were confident that it was ready.
“The buy-in from the industry has been fantastic. This week’s successful changeover is the result of months of rigorous testing and we appreciate the cooperation of the system’s key users.”
The Reserve Bank’s payment settlement system is used by 57 member organisations including banks, custodians, registries and brokers. This equates to around 600 users of the system, from New Zealand, Australia and Asia.
“Our members now have access to far more modern, future-proofed and leading edge systems for them to manage their day-to-day interactions with the Reserve Bank,” Mr Wolyncewicz says.
The systems replacement follows a strategic review of the incumbent payment and settlement systems operated by the Reserve Bank, completed in 2014 in anticipation of the need to align with today’s operational and technological standards.