WELLINGTON, New Zealand--New Zealand's securities exchange said a BNP Paribas S.A. unit will be accredited as a general clearing participant next year in a possible boost to overseas investment in locally listed shares.

BNP Paribas Securities Services will use its third-party clearing model in New Zealand after an approval process that is expected to be completed in the first half of 2021, the exchange operator, NZX Ltd., said Tuesday.

NZX said the arrangement with BNP Paribas Securities Services is a "new initiative focused on boosting offshore capital flows into NZX to further develop the New Zealand capital market."

A general clearing participant can clear and settle trades on behalf of other market participants and itself. BNP Paribas Securities Services is already the sole general clearing participant for equity and dairy derivatives on the NZX.

The stock market based in the capital, Wellington, has a capitalization of about 166 billion New Zealand dollars ($110 billion).

 

Write to Stephen Wright at stephen.wright@wsj.com

 

(END) Dow Jones Newswires

August 03, 2020 19:04 ET (23:04 GMT)

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