Notification of financial benchmark reforms

A reform of financial benchmarks is underway globally. Overseas regulators have announced Interbank Offered Rates (IBOR) for the following currencies will discontinue as benchmarks at the end of 2021:

  • GBP (British Pound)
  • CHF (Swiss Franc)
  • JPY (Japanese Yen)
  • EUR (Euro).

The USD (US Dollar) will discontinue as a benchmark from June 2023. 

In most jurisdictions, risk-free rates (RFRs) are expected to replace current interest rate benchmarks. Regulators around the globe are encouraging market participants to transition to an alternative rate before LIBOR (London Interbank Offered Rate) and other benchmarks cease to exist. The effects of this change will differ across the financial markets and will impact both new and existing products referencing IBORs.

BNZ has established a project team to comprehensively manage the impacts of IBOR reform, including overseeing the transition from impacted interest rate benchmarks to RFRs.

Information on the financial benchmark reforms, derivatives, and floating rate notes disclosure

For more updates on the financial benchmark reforms visit the New Zealand Financial Markets Association website.

FX Global Code of Conduct 

On 22 May 2018, BNZ committed to adopt and comply with the BIS Foreign Exchange Global Code of Conduct. BNZ signed a statement of commitment to the Code which enhances the integrity and effective functioning of wholesale foreign exchange markets. In July 2021, the Global Foreign Exchange Committee (GFXC) published an updated version of the FX Global Code. On 2 November 2023, BNZ renewed its Statement of Commitment to the latest FX Global Code.

FX Global Code of Conduct  (PDF 44KB)


Wholesale Markets Sales and Trading Practices 

This letter outlines how BNZ will communicate and transact in relation to Wholesale foreign exchange, fixed income and commodities transactions and our management of potential or actual conflicts of interest in our Wholesale Markets related activities. This letter concerns Wholesale clients only.

Sales and Trading Practices (PDF 280KB)
Spot Order Management Fact Sheet for Wholesale Customers (PDF 60KB)

FMSB Statement of Commitment - Reference Price Transactions

The FICC Markets Standards Board (“FMSB”) was established in 2015 as a private sector response to the conduct problems revealed in global wholesale markets after the global financial crisis. BNZ has signed a Statement of Commitment in relation to Reference Price Transactions.

FMSB Statement of Commitment  PDF 46KB

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