NZCC PARTICIPANT FEE SCHEDULE Effective 1 July (Updated 10 February 2011)

Transcription

1 NZCC PARTICIPANT FEE SCHEDULE Effective 1 July 2010 (Updated 10 February 2011)

2 CONTENTS PAGE 1. INTRODUCTION! 3 2. CHANGES IN THIS VERSION! 3 3. CONTACT DETAILS! 4 4. MEMBERSHIP FEES! 5 5. TRANSACTION FEES! 8 6. TECHNOLOGY FEES! MARKET OVERSIGHT RECOVERIES! 15 Disclaimer: The information contained in this document is a guide only. All Participants on any NZX Market must comply with the relevant Rules, and this document is not a substitute for those Rules. NZCC will determine, in its sole discretion, whether any Participant or potential Participant meets the requisite criteria to become and remain a Participant. Those wishing either to trade in any products available at NZX or to offer and sell them to others should consider both their legal and regulatory position, including the relevant Rules, and the risks associated with such products before doing so. No part of this publication may be redistributed or reproduced in any form or by any means or used to make any derivative work without written permission from NZCC. NZCC (including its parent company directors, officers, employees and contractors) shall not be liable (except to the extent required by law) for the use of the information contained herein however arising in any circumstances connected with actual trading or otherwise. NZCC is not responsible for any errors or omissions contained in this publication. This publication is for information only and does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any other transaction. All information, descriptions, examples and calculations contained in this publication are for guidance purposes only, and should not be treated as definitive. NZX PARTICIPANT FEE SCHEDULE 2 of 16

3 LIST OF CURRENT PRICES, FEES AND REQUIREMENTS 1. INTRODUCTION The purpose of the NZCC Participant Fee Schedule is to outline pricing and charges for NZCC Participants. This schedule will apply from NZCC go live. Any changes that occur will be notified to the market in a revised and consolidated fee schedule placed on the NZX website under nzx_customers/market_participants/fees All fees will be invoiced at the rates set out below, in New Zealand dollars, unless stated otherwise, and exclusive of GST. All fees are payable within 14 days of being invoiced and participants must pay GST on all fees. Interest will be charged on any invoice more than 20 days overdue at the current IRD use of money interest rate. 2. CHANGES IN THIS VERSION Section Number Description of Change Page Number 5 A Whole Milk Futures amended to Dairy Futures 8 5 B Whole Milk Futures amended to Dairy Futures 8 NZCC PARTICIPANT FEE SCHEDULE 3 of 16

4 3. CONTACT DETAILS Any queries regarding the NZCC Participant Fee Schedule should be directed to NZCC as per the contact details below. New Customer and General Enquiries Phone: Postal Address: NZCC Market Supervision NZX Limited Level 2, NZX Centre, 11 Cable Street PO Box 2959, Wellington 6011 Billing Enquiries goldaccounts@nzx.com Phone: Postal Address: NZX Accounts NZX Limited Level 2, NZX Centre, 11 Cable Street PO Box 2959, Wellington 6011 NZCC PARTICIPANT FEE SCHEDULE 4 of 16

5 4. MEMBERSHIP FEES A. Application and Accreditation Becoming an NZCC Participant involves an application and accreditation process. The accreditation process is performed by NZCC Market Supervision staff at the time of application and before approval has been granted. In addition to the application fee, NZCC reserves the right to charge additional accreditation fees at a rate of $200 per hour if it is considered that the application has required a higher level of analysis than normal. Application fees are payable upon lodgement of an application with NZCC, regardless of the outcome. 1 Existing NZX Participants are not liable for application fees to become Individual Clearing Participants for the cash market. However, applications to expand their Participant status in the future will be subject to the published fee schedule. Participants Onshore Participant Offshore Participant (USD) Clearing Participant Cash and Derivatives - Individual and General Clearers $7,000 $5,000 Depository Participants Depository Participants 1 $7,000 $5,000 Depository Participant - Legal Title Transfer $7,000 $5,000 NZCC Approved Registry $7,000 N/A 1 Individual and General Clearing Participant application fee (cash and derivatives) includes the application fee for becoming a Depository Participant. NZCC PARTICIPANT FEE SCHEDULE 5 of 16

6 B. Initial Admission Initial Admission are invoiced by NZCC on the successful accreditation of an NZCC Participant in each of the categories detailed below. Existing NZX Participants are not liable for initial fees to become Individual Clearing Participants for the cash market. However, applications to expand their Participant status in the future will be subject to the published fee schedule. NZCC offers a Founding Partner Programme for clearing participants who join the Derivatives Market within 6 months of the launch of the market. Please contact markets@nzx.com for more information in respect of this programme. Participants Onshore Participant Offshore Participant (USD) Clearing Participant Cash Market - Individual Clearer $35,000 $24,500 Cash Market - General Clearer $45,000 $31,500 Derivatives Market - Individual Clearer $50,000 $35,000 Derivatives Market - General Clearer $65,000 $45,500 Depository Participants Depository Participants 1 $6,250 $4,375 Depository Participant - Legal Title Transfer $15,000 $10,500 NZCC Approved Registry $25,000 $17,500 1 Individual and General Clearing Participant initial fee (cash and derivatives) includes the initial fee for becoming a Depository Participant. NZCC PARTICIPANT FEE SCHEDULE 6 of 16

7 C. Annual Membership Annual Membership are due on 1 July for the following 12 months and are non-refundable either in whole or in part if the Participant ceases to be an NZCC Participant during that period. For newly accredited NZCC Participants, the annual fee is billed on a pro-rata basis upon accreditation. NZCC offers a Founding Partner Programme for clearing participants who join the Derivatives Market within 6 months of the launch of the market. Please contact markets@nzx.com for more information in respect of this programme. Clearing Participant Participants Onshore Participant Offshore Participant (USD) Cash Market - Individual Clearer $20,000 $14,000 Cash Market - General Clearer $25,000 $17,500 Derivatives Market - Individual Clearer $50,000 $35,000 Derivatives Market - General Clearer $65,000 $45,500 Depository Participants Depository Participants 1 $6,250 $4,375 Additional depository sign on $250 per annum (For each additional sign-on, beyond two free sign-ons) $175 per annum (For each additional signon, beyond two free sign-ons) Depository Participant - Legal Title Transfer $20,000 $14,000 NZCC Approved registry $25,500 $17,850 1 Individual and General Clearing Participant annual fee (cash and derivatives) includes the annual fee for becoming a Depository Participant. NZCC PARTICIPANT FEE SCHEDULE 7 of 16

8 5. TRANSACTION FEES The transaction fees included in the NZX Market Participant Fee Schedule as at 24 March 2009 will continue to apply until the NZCC goes live, after which the transaction fees below will apply. A. Clearing Cash Equity and Debt Trade $0.20 per trade plus: 0.30 bps for daily value below $8m 0.25 bps for daily value between $8- $20m 0.15 bps for daily value between $20- $32m 0.10 bps for daily value above $32m Derivatives (all fees per lot per side) Agricultural Derivatives Dairy Futures Clearing Fee US$0.42 All Derivatives (per trade) Give-up - includes between accounts and between Participants Position Adjustment - Match-out / Close-out trade Match-out / closeout - Manual entry by Clearing House US$0.05 US$0.10 US$4.00 B. Settlement and Exercise Cash Equity and Debt Trades $1 per security line per settlement batch Derivatives (all fees per lot per side) Agricultural Derivatives Dairy Futures US$0.42 NZCC PARTICIPANT FEE SCHEDULE 8 of 16

9 C. Settlement Penalties These fees are invoiced and payable monthly based on the activity conducted. Cash Settlement Failure 1 Corporate Actions Claims Process for Failed Obligations A minimum of $500 or 25bps per day $200 per hour Buy-in Fee $500 Close-Out Fee $500 Derivatives Settlement Failure $1,000 1 Based on the absolute value of each settlement obligation outstanding past the assigned settlement date. NZCC reserves the right to charge on an hourly basis for NZCC staff involved in settlement recovery at the urgent rate of $450 per hour. D. Depository Securities Movements Pre/Post settlement Movement of NZX-listed Securities $1.50 per side per transaction Pre/Post settlement Movement of Non NZX-listed Securities $6.00 per side per transaction NZCD Lodge $0.75 NZCD Uplift $1.50 Custody of Equity Securities 1 Custody of Debt Securities 1 Additional company sign-on (two free logins provided) 0.70 bps per annum calculated monthly 0.35 bps per annum calculated monthly $250 per annum 1 For large depository participants, volume discounts can be discussed. NZCC PARTICIPANT FEE SCHEDULE 9 of 16

10 Cash Movements Deposit and withdrawal of funds outside normal hours (normal hours are 9.30am to 4.00pm) - Using SCP switch Deposit and withdrawal of funds outside normal hours (normal hours are 9.30am to 4.00pm) - Using Austraclear switch Cash transfer - between depository accounts (either within a participant or across participants) Surcharge on cash withdrawals during normal hours (using SCP switch) Surcharge on cash withdrawals during normal hours (using Austraclear) $10.00 per day $25.00 per day $0.75 per transfer $10.00 per transfer $25.00 per transfer E. Margin Related Cash Collateral Fee (fee for managing cash collateral balances) Margin Call Fee (where margin balance falls below margin requirement) 100 bps per annum charged daily $30 per call F. Stock Lending Borrowing (minimum one day) Lending Fee Income OCR plus 50 bps (per annum) OCR minus 50 bps (per annum) G. Clearing House Messages and Information Requests Under the Rules, Trading Participants are required to confirm that their end client has legal title to the securities they are offering for sale. This is done through messaging from NZCC infrastructure. Client outward transfers, client inward transfers, owned outward transfer, owned inward transfer, delivery free of payment $0.75 CSN Portfolio Balance Enquiry per line item returned $0.12 NZCC PARTICIPANT FEE SCHEDULE 10 of 16

11 6. TECHNOLOGY FEES The technology fees included in the NZX Market Participant Fee Schedule as at 24 March 2009 will continue to apply until the NZCC goes live, after which the technology fees below will apply. A. Connectivity The figures below represent indicative network installation and connectivity pricing. Final pricing is dependent on actual site locations, existing equipment, time and materials, fees from service providers and timing requirements. NZCC Participants will be charged separately for access to and use of the testing environment, testing and training services and additional custom development dependent on the level of use and work required. Where an NZCC Participant has a connection with NZX, and has already paid for that connection, only additional connections or IT costs specifically in relation to a connection for NZCC will be charged by NZCC. Installation (One-off) Direct and Gateway Connection New Zealand $1,000 Australia $1,300 Asia $3,300 - $5,000 UK $4,300 US $3,700 Monthly Connectivity Network Infrastructure Fee NZCC reserves the right to amend these fees annually based on participant and infrastructure capacity and usage requirements. Monthly connectivity fee include the participant s share of core network usage, transmission and managed service and infrastructure costs. Direct and Gateway Connections Metro Circuits (Wellington and Auckland) $1,700-$2,000 Other National Circuits $2,000-$2,500 Direct Connection from overseas: - Australia $3,000 - $4,300 - Asia $3,900 - $4,300 - UK $4,100 - $4,600 - US $4,100 - $4600 NZCC PARTICIPANT FEE SCHEDULE 11 of 16

12 B. Virtual Private Network (VPN) Service Amount Description Base Connection sign-on $1,000 VPN Monthly Fee $5,000 per year Fee for VPN connection, includes share of core network usage and transmission. NZCC reserves the right to amend these fees annually based on participant and infrastructure capacity and usage requirements. C. SWIFT Application Service Amount Description NZCC/SWIFT Interface - Pass Through Interface Messages As per SWIFT A pass through of SWIFT application fee plus an administration fee (one off). SWIFT - Pass Through As per SWIFT A pass through of SWIFT messaging fees plus an administration fee. D. Gateway Data Enquiry Product Subscribers to this service will be invoiced annually on 1 July based on the previous year s usage. NZCC PARTICIPANT FEE SCHEDULE 12 of 16

13 E. IT Testing and Training Services IT Training for NZCC Systems Training to use NZCC Systems may be required in order for users to be accredited by NZCC Supervision. The fees below apply to training on NZCC Systems. In relation to the training required, NZCC Participants may: 1. Appoint one individual to undergo training on NZCC Systems. That individual will then be responsible for training all other employees of that NZCC Participant; or 2. Request that NZCC provides all of its training for NZCC Systems. Duration Amount Details Full Day $1,680 Training for a whole day Half Day $840 Training for half a day Per hour (one hour minimum) $210 Training for any length less than half a day Participant Support Services Use of NZCC staff for assistance in ISV system development network changes, data development requirements and testing (outside the normal course of business) will be charged at the following rates: Rate Standard Rate After Hours 1 Amount $250 per hour (one hour minimum) $300 per hour (one hour minimum) 1 After hours includes Monday to Friday , weekends and New Zealand public holidays. Technical Testing and Conformance Services NZCC PARTICIPANT FEE SCHEDULE 13 of 16

14 NZCC testing services are available for all NZCC Participants, back office vendors, data distributors and ISV s. Additionally, actual costs incurred for travel and other expenses will be on-charged to the NZCC Participant. NZCC has sole discretion for the purpose of calculating any charge for conformance and testing services provided. Charges will be agreed and signed off before any work commences. TESTING TYPE Amount Conformance Testing DMA Testing $2,000 per day $2,000 per day Clone Systems Conformance Environment NZCC will create and maintain a cloned NZCC Systems conformance environment for the duration of certain projects only. NZCC expects the daily maintenance and support to take a minimum of an hour per day. Service Amount Details Clone Conformance Environment $6,000 One-off set up charge for the duration of the project only Maintenance and Support $210 per hour Charge for daily maintenance and support of the NZCC cloned conformance environment Back Office System (BOS) Changeovers Participants will be charged a one-off $5,000 administration charge if they wish to change their Back Office System (BOS) plus $250 per hour for work completed by NZCC inside normal business hours. Any work completed by NZCC outside of normal working hours will be separately charged at $300 per hour, after hours including Monday to Friday , weekends and New Zealand public holidays. Other Adhoc Requests Rate Standard Rate After Hours 1 Amount $250 per hour (one hour minimum) $300 per hour (one hour minimum) 1 After hours includes Monday to Friday , weekends and New Zealand public holidays. NZCC PARTICIPANT FEE SCHEDULE 14 of 16

15 7. MARKET OVERSIGHT RECOVERIES NZCC requires that all NZCC Participants provide details of their compliance with the applicable rule sets and their financial position on a monthly basis. If an NZCC Participant has more than one category of participation, the highest applicable amount is paid, rather than the aggregate amount. Quarterly recoveries are invoiced three months in arrears on 1 January, 1 April, 1 July and 1 October of each year. A. Quarterly Compliance Participants Recoveries Cash Market - Individual Clearer $675 Cash Market - General Clearer $675 B. Annual Desk Based Capital and Prudential Inspections Participants Recoveries Cash Market - Individual Clearer $7,500 Cash Market - General Clearer $7,500 C. On Site Inspections NZCC Market Supervision conducts onsite supervisory inspections of the business conduct, practices and systems of NZCC Participants. Inspections are conducted by NZCC Supervision staff and will be completed annually or at other intervals as determined by NZCC Supervision. The hourly NZCC charge includes NZCC staff time spent in preparation for Participant visit times on site and subsequent reporting writing and follow-up activity. Recoveries Hourly labour charge Travel and Expense $250 per hour Actual costs incurred NZCC PARTICIPANT FEE SCHEDULE 15 of 16

16 D. Applications for Waivers & Exemptions from NZCC Rules Applications are billed at an hourly rate, for actual time spent on any request regardless of the outcome. The rates applied are based on the urgency of the decision as indicated by the NZCC Participant at the time of the application. Time Frame Total Hourly Charge Standard Rate (10 plus business days) $300 Priority Rate (Decisions required in 0 to 10 business days) $450 NZCC PARTICIPANT FEE SCHEDULE 16 of 16