MINUTES OF THE MEETING OF THE NZCLEAR SYSTEM USER

MINUTES OF THE MEETING OF THE NZCLEAR SYSTEM USER
ADVISORY COMMITTEE HELD BY TELECONFERENCE
26 FEBRUARY 2014 AT 9.30 AM
Attendees:
Mark Lawrence
Patty Bow
Miles O’Connor
Dave Mitchell
Andrew Beattie
Justin Christopher
Greg Murphy
Shaun Montgomery
J. P. Morgan
HSBC Nominees Limited
Citibank
Computershare Investor Services Limited (Chair)
ANZ Bank NZ Limited
BNP Paribas Securities Services
Bank of New Zealand
Craigs Investment Partners
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RBNZ:
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Mike Wolyncewicz
Nathan Lewer
Tanya Harris
Kevin Jamieson
Datacom:
Graeme Beasley
Bank of New Zealand
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Apologies:
Peter Barnes
MINUTES
The minutes of the meeting of 12 September 2014 were accepted.
MATTERS ARISING
An outstanding item on the Aug 2013 Fee Revision. RBNZ committed to providing
thought on a flat fee structure. Nathan Lewer to provide a paper to the group by 31
March 2014.
REVIEW OF OPERATIONS AND PROGRESS AGAINST OBJECTIVES TO
31 January 2014
Broadly, the Bank is on track to meet its objectives. Volumes are up for the first 7
months of the year, coupled with the fee increases in August not fully budgeted,
revenue for the year is ahead of plan.
No outages occurred for the period Sep-Jan, however a partial outage was noted on
04 Feb for some users. The duration of 180 minutes affected the ability of some
2
users to log on. A fix was introduced intra-day and normal coverage resumed prior to
EOD.
A draft Corporate Actions standards paper has been prepared and circulated to the
working group to discuss further and agree a course of action to take things forward.
After receiving feedback from Computershare only, RBNZ will look to update the
paper and re-circulate to the group.
Due to competing priorities, the review of securities processing functionality in the
system will not be able to be progressed this year.
REVIEW OF DEVELOPMENT WORK
The report was taken as read. Kevin Jamieson highlighted the fact that the current
priority is the work undertaken to enhance the system’s security.
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An ESAS back-up system has been developed and currently being tested. This will
provide a viable back-up for ESAS should we experience an outage impacting all
instances of the system i.e database corruption. Deployment date to production
environment is scheduled for 22 Mar 2014.
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CLS contingency automation project is nearing completion with NZD Nostro testing
to be carried out 04 Mar 2014.
RBNZ are working through support options for Java 1.8. Mandatory upgrade of Java
version may be required by all users depending on final outcome of support options.
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INDUSTRY DEVELOPMENTS
There are no new developments to report.
The RBNZ payments review is progressing with a consultation paper due for release
in April for industry consultation interviews.
OTHER BUSINESS
Mark Lawrence advised that ACSA ( Australian Custodial Service Association) has
established a NZ working group, of which Mark is the chair. This group will align
with the Australian model and look to involve itself in industry matters through the
working group.
RBNZ is trying to ascertain whether or not IRD and the US Treasury anticipate
whether an intergovernmental agreement will be negotiated which will impact
application of FATCA in New Zealand.
Next meeting: TBC tentatively early June.