Board named for NZX clearing house

Pip Dunphy. Photo / Supplied

A former investment banker will head the board of the NZX's long-awaited clearing house business.

Pip Dunphy, a former executive director with Goldman Sachs JBWere, was yesterday appointed to chair a three-strong board for NZ Clearing and Depository Corporation.

The clearing house is being set up by the NZX to provide a central place for securities and derivative transactions to be settled and cleared, reducing the risk of one party failing to honour its side of the deal. At present companies settle directly with each other.

Only companies which become accredited clearing participants will be able to deal directly with the clearing house.

An NZX spokeswoman said an independent board was one of the regulatory requirements.

The clearing house must be approved by the Reserve Bank and the Securities Commission before it can go ahead.

Dunphy, who is also a Reserve Bank of New Zealand monetary policy adviser, director of ACC and member of the Securities Commission's financial adviser code committee, said the clearing house was an important step up for New Zealand financial markets.

The NZX recently suffered a blow to its clearing house plans with five main power generators opting to trade energy derivatives on the Australian Securities Exchange, a decision Dunphy hopes will be reversed in time.

The other board members are former ANZ National Bank chief information officer Peter Lockery and NZX representative and solicitor Robyn Dey.

The launch date for the clearing house is July 26 and the board will hold its first meeting on June 18.