5.1: Enhance depository and settlement infrastructure
Reprioritized pending National Treasury's guidance on consolidation of the CSDs.
The Authority is currently developing a paper for consideration by the National Treasury in Q1 2018.
Cash settlement leg for equities implemented through CBK RTGS system in 2015. CDSC system modernization currently ongoing.
Mitigation measures to be automated through the new systems.As part of improving risk management cash settlement leg for equities implemented through CBK RTGS system in 2015.Enterprise Risk Management Framework is in place and review is done regularly.Mitigation measures to be automated through the new systems.
This is included in their 2016 - 2020 strategy and it is envisioned that the SRO status will be achieved in 2018.
Assessment was completed in 2016 and the recommendations are being implemented in stages.
Consultant has been on boarded by the National Treasury to undertake a feasibility study on the viability of merging the CSD.
The draft procedures for stock lending to be reviewed once the SLB regulations are gazetted.The stock lending procedures by CDSC are under review by the Authority.
The new system under implementation has the capability of supporting stock lending and issuance of GDRs.
CDS Kenya and CSCS of Nigeria are working in conjunction with the African Development Bank on an initiative to link the two markets to support trading and settlement of securities listed in the two countries. The proposed framework was submitted to the Authority in April 2017 and discussions between the two parties is ongoing.Continental linkage with other jurisdictions will come at a later stage following the successful completion of the ongoing initiative with Nigeria.
The Authority is in the process of developing policy paper to guide requirements for establishment of a CCP.
In April 2017, CDSC made proposals to the Authority on connectivity with Nigeria Securities Exchange through Africlear.