Media Release
MR No. 2025 – 53
The Financial Markets Authority (FMA) - Te Mana Tātai Hokohoko – has welcomed the European Commission decision to recognise New Zealand’s legal and supervisory framework for financial benchmarks as equivalent to the European Union’s.
Together with the FMA’s decision to issue New Zealand Financial Benchmark Facility Limited (NZFBF) a benchmark administrator’s licence this week, this means that the NZ Bank Bill Rate benchmark (BKBM) can continue to be used in the EU from 1 January 2026.
FMA General Counsel Liam Mason said: “This is a significant outcome for New Zealand, and for all financial institutions and businesses that trade between New Zealand and the European Union that use the BKBM in their commercial transactions.
“It means that the more than EUR 50 billion of financial instruments currently in use in the EU that reference the New Zealand Bank Bill Rate benchmark can continue to be used without disruption from 1 January 2026.
“This benchmark is used as a base interest rate in financial contracts to calculate interest as part of commercial transactions – for example by holders of interest rate swaps.
“Without this decision, these financial instruments cannot legally reference the BKBM. It means the businesses and organisations would need to find an alternative EU-based benchmark for their transactions, which is not feasible.
“This step marks the close of a multi-year effort to have New Zealand’s benchmark recognised in the European Union, including introducing a bespoke licensing regime to comply with the updated EU benchmark regulatory requirements.
“In this latest phase, the FMA and MBIE worked closely with NZFBF, the sole benchmark provider in New Zealand, to provide the Commission with critical advice on the size and significance of the benchmark,” said Mr Mason.
Commission adopts equivalence decision for New Zealand's financial benchmarks - Finance
ENDS
Media contact:
Ellie Martel
FMA Senior Adviser, Media Relations
[email protected]
021 241 7868
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