5.1: Enhance depository and settlement infrastructure

Measurement
Management of CDSC with support from CMA.
Working Group
Achievement

Reprioritized pending National Treasury's guidance on consolidation of the CSDs.

Status
Not Started
Measurement
Realign board composition to reflect usage and remove conflicts of interest. Management of CDSC.
Working Group
Achievement

Reprioritized pending National Treasury's guidance on consolidation of the CSDs.

Status
Not Started
Measurement
CDSC Board takes responsibility for maintaining a sound financial position, setting CDSC financial plan, setting and publishing fee schedule, subject to competition and consumer protection controls.
Working Group
Achievement

The Authority is currently developing a paper for consideration by the National Treasury in Q1 2018.

Status
Time bad
Measurement
CDSC implements new settlement infrastructure, working with CBK to implement settlement in central bank money.
Working Group
Achievement

Cash settlement leg for equities implemented through CBK RTGS system in 2015.
CDSC system modernization currently ongoing.

Status
In Progress
Measurement
CDSC conducts an overall review of its risk exposures and risk mitigation measures to ensure that all potential risks are covered with resources that are proportionate to the size of risk.
Working Group
Achievement

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.

Status
In Progress
Measurement
CDSC achieves SRO status. CDSC sets standards for settlement performance with penalties for firms failing to achieve them. CDSC ensures removal of pre-trade requirements (whether set by CDSC or by NSE).
Working Group
Achievement

This is included in their 2016 - 2020 strategy and it is envisioned that the SRO status will be achieved in 2018.

Status
Time bad
Measurement
CDSC appoints external reviewer and acts on gaps identified.
Working Group
Achievement

Assessment was completed in 2016 and the recommendations are being implemented in stages.

Status
In Progress
Measurement
Ensure CDSC has the capacity to handle all services required for the government bond market. Transfer holdings of Government bonds and the location of settlement from CBK to CDSC. Review ownership and governance.
Working Group
Achievement

Consultant has been on boarded by the National Treasury to undertake a feasibility study on the viability of merging the CSD.

Status
Time bad
Measurement
CDSC to investigate possibility of developing services to match borrowers and lenders Support lending by recording open loans, revaluing stock on loan, passing collateral, automatically returning borrowed securities when they are no longer needed and ensuring that benefits, such as dividends, are passed from the borrower to the lender Implement services where feasible
Working Group
Achievement

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.

Status
In Progress
Measurement
CDSC should ensure that there are no legal, technical or other barriers to local DRs being issued into CDSC.
Working Group
Achievement

The new system under implementation has the capability of supporting stock lending and issuance of GDRs.

Status
In Progress
Measurement
Number of Form of Payment and DVP links open. Number of security transfers made.
Working Group
Achievement

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.

Status
In Progress
Measurement
CCP in place.
Working Group
Achievement

The Authority is in the process of developing policy paper to guide requirements for establishment of a CCP.

Status
In Progress
Measurement
CDSC working with local custodian banks, Euroclear and Clearstream Number of securities held in reciprocal accounts
Working Group
Achievement

In April 2017, CDSC made proposals to the Authority on connectivity with Nigeria Securities Exchange through Africlear.

Status
Time bad

Key

No Progress
Behind Schedule
Ahead of Schedule