((This Aug 3 story corrects paragraph 1 to say NZX will partner with BNP Paribas' securities services unit, not its asset management unit).)
(Reuters) - New Zealand stock exchange operator NZX Ltd said it will partner with the securities services unit of French investment bank BNP Paribas to shore up offshore capital flows.
BNP Paribas Securities Services will work towards becoming a general clearing participant by the first half of 2021, allowing it to clear and settle transactions for itself and other market participants, NZX said in a statement.
The stock exchange operator said BNP will introduce its third-party clearing model to direct members in New Zealand and remote brokers, offering a cost-effective solution for managing large trading volumes.
Benjamin Phillips, NZX executive director for markets development & clearing, said the partnership was "an important endorsement of NZX's markets development strategy and its success in attracting wider participation by global participants."
(Reporting by Arpit Nayak in Bengaluru; Editing by Matthew Lewis)