Bill to align financial markets passes reading

Kris Faafoi

"The Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Bill passed its first reading last night. The amendments in this Bill will align us with international regulations made to strengthen the resilience of global financial markets and reduce risk.”

He said the bill was critical to ensure financial institutions that relied on derivatives could continue to transact seamlessly in international markets.

“Financial institutions like the Super Fund, ACC and banks use derivatives to hedge against factors such as currency risks when they make investments or raise money offshore.

“Being able to access the global financial markets ensures these entities can invest and raise funds cheaply and efficiently. This ultimately benefits New Zealand consumers and businesses, who are the end-users of these entities.”