RBNZ welcomes new NZFMA role

The Reserve Bank has welcomed today's announcement by the New Zealand Financial Markets Association (NZFMA) that it has taken on the role of managing New Zealand's standardised over-the-counter derivatives documentation. This role was previously undertaken by the New Zealand Bankers' Association.

Deputy Governor Grant Spencer said: "Standardised documentation is an important component of managing legal risks in financial market transactions. Having the NZFMA's broader membership base involved with the development and use of this documentation is a positive step."