Escrow Services

ICAP-NZCX offers an escrow service to clients to mitigate counter-party risk.  

Introduction

The ICAP-NZCX escrow service has been developed in response to market interest.

 

The service is of most benefit where sellers are unsure of the credit worthiness of a buyer or where a buyer seeks assurance of unit delivery prior to transfer of funds to the seller.

How it Works

Following agreement on trade volume and price, the buyer, seller or both may elect to use the ICAP-NZCX escrow service.

 

  • The buyer requires units to be transferred into the ICAP-NZCX Escrow Holding Account in the NZ EUR.
  • The seller requires funds to be lodged in the ICAP-NZCX Escrow Bank Account.
  • Once ICAP-NZCX sights both units and funds in the respective escrow NZEUR and bank accounts, transfer of units to the buyer and funds to the seller is made.

 

Escrow services may be two-way, as described above, or one-way where only funds or units are transferred through ICAP-NZCX, the other side of the transaction being made directly.

 

How much does it cost?

ICAP-NZCX charges a volume-related escrow fee.

 

How to trade with ICAP-NZCX

Client requirements are set out clearly in our engagement checklist.