5.1: Enhance depository and settlement infrastructure
CDSC has included this activity for implementation in their 2016-2020 strategy.
CDSC has included this activity for implementation in their 2016-2020 strategy
CMA is developing a paper on phased liberalization of financial policies for financial firms and infrastructure providers for consideration by NT by June 2019.
Cash settlement leg for equities implemented through CBK RTGS system in 2015. CDSC system modernization under implementation.
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.
The assessment was completed in 2016 and the recommendations are being implemented as per the work plan.
A consultant was on-boarded by the National Treasury in July 2017 to undertake a feasibility study on the viability of merging the 2 CSDs.
The study was completed in June 2018 on Kenya Post-trade infrastructure. The study recommended that CBK and CDSC should operate separate CSDs for government and corporate securities respectively since both are at different stages of upgrading their systems. However, this structure should be reviewed before the start of the next investment cycle, when it becomes necessary to invest in replacement systems.
The SLB and short selling Regulations were gazetted on 12 January 2018.The Authority is in engagement with CDSC to develop the stock lending operational procedures.
The new system under modernization has the capability of supporting the issuance of GDRs.
CDSC 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 on 6 April 2017.On 4 February 2019, the Authority approved the application by CDSC on the proposed inter depositary services between Kenya and Nigeria facilitated by Africlear Global.
The Authority developed a concept paper on the establishment of CCPs and is in the process of developing policy paper to guide requirements for establishment of a CCP by June 2019.
In April 2017, CDSC made proposals to the Authority on connectivity with Nigeria Securities Exchange through Africlear. On 4 February 2019, the Authority approved the application by CDSC.