The New Zealand Stock Exchange (NZX) says it will use the Swiftnet FIN network for clearing and settlement messaging.
The move comes on the back of a decision earlier this year by the exchange to install a central counterparty clearing house and central securities depository from Tata that will now link to the Swift network.
Following a change in its settlement arrangements for equities and debt products to use central bank funds NZX will use SwiftNet FIN messaging to communicate with the Reserve Bank of New Zealand (RBNZ).
The exchange says its new carbon trading market, TZ1, also played a part in the decision to choose Swift. NZX says SwiftNet will enable TZ1 to provide straight-through processing (STP) services to financial institutions around the world and interface with commercial banks for a variety of currencies to allow DvP settlement of emissions contracts.
Martyn Bain, head of IT projects, NZX, says: "Swift was selected as the NZX's primary messaging platform because of its business value, proven technical excellence and customer reach."
Commenting on NZX's move, Charles Legrand, head of South Asia for Swift, says: "New Zealand will become the first market in Asia Pacific to have all its domestic payment and securities market infrastructures accessible via Swift's international standards."