Participant Types

Advising Participant / Derivatives Advising Participant

An Advising Participant's primary role is to advise clients on the markets provided by NZX. Advising Firms are not able to directly enter and / or settle trades and must enter into a Trading Agreement with an NZX accredited Trading and Advising Participant for the execution of Trades.

An Advising Participant may also hold client funds if permitted to do so by NZX.

Advising Participant's must meet minimum capital requirements on an initial and ongoing basis.

Trading and Advising Participant / Derivatives Trading and Advising Participant

A Trading and Advising Participant has the ability to advise clients, and to trade on behalf of clients or as Principal in the markets provided by NZX.

Trading and Advising Participants must meet minimum capital requirements on an initial and ongoing basis

A Trading and Advising Participant may be accredited as an FSM Participant to provide services to farmers who wish to trade on the Fonterra Shareholders Market.

Clearing Participant

A Clearing Participant must be a company and meet specific criteria, including meeting minimum capital requirements on an initial and ongoing basis. A Clearing Participant must also be a Depository Participant under the New Zealand Depository Limited Rules. Clearing Participants fall into three main categories:

• Individual Clearing Participant ("ICP") - An ICP clears and settles transactions only for itself and will be a Participant in an NZX Market.
• General Clearing Participant ("GCP") - A GCP clears and settles transactions for itself and / or other Market Participants who are not Clearing Participants. A GCP is not required to be a Participant in an NZX Market.
• Default Clearing Participant ("DCP") - A DCP is a category of GCP that maintains technology to support all products offered by NZX and is required to be available to clear and settle trades for any Participant in an NZX Market.

Depository Participant

Every Clearing Participant is required to be a Depository Participant. Participation is intended for institutional investors, including brokers, custodians and fund managers; it does not cater for retail participation. There is only one category of Depository Participant; however a Depository Participant may be assigned additional roles as follows:

• Legal Title Transfer Depository Participant - A Legal Title Transfer Depository Participant may effect the transfer of legal title to securities by electronic means.
• Borrower - The Borrower role allows a Depository Participant to borrow securities from the lending pool, subject to the provision of eligible collateral.
• Lender - The Lender role enables a Depository Participant to place securities in the lending pool and be selected to lend securities.

Principal Book Only Dealer

A Principal Book Only Dealer can trade solely as Principal in any of the markets provided by NZX.

Bank Only Participant

A Bank Only Participant can trade solely in the debt market provided by NZX (NZDX Market). A Bank Only Participant can trade on behalf of clients or trade as Principal on its own account.

NZX Sponsor

An NZX Sponsor can bring, but not distribute, any new issue of securities to any of the securities markets provided by NZX.

Distribution and Underwriting Sponsor

A Distribution and Underwriting Sponsor can distribute and / or underwrite a new issue of securities brought to any of the securities markets provided by NZX.