Contact us on 0700 CALL CSCS (0700 2255 2727) or [email protected]

CSCS ready for securities lending, borrowing for custodians

CSCS ready for securities lending, borrowing for custodians

The Central Securities Clearing System (CSCS) Plc on Tuesday presented Securities Lending and Borrowing (SLB) and Post-Trade Allocation process flows to the capital market operators with the view to enhancing market liquidity. The presentation took place at an event organised by CSCS in Lagos.

Explaining how this arrangement works, Mr. Joseph Mekiliuwa, General Manager, Operations, Central Securities Clearing System (CSCS) Plc said the SLB arrangement would enable market participants to lend securities from a registered Securities Lending Agent (SLA). This arrangement is open to the Custodian Banks and their brokers.

Speaking further, Mr. Mekiliuwa said the arrangement would aid market participants to go short by selling securities that they do not have and lending from the SLA to cover their short position before settlement date. The Post – Trade allocation arrangement will enable stockbroking firms buy securities en-bloc into a pool account on behalf of a custodian firm and on the same day re-allocate same securities to the beneficial owner’s accounts domiciled with the custodian firms according to the beneficial owner’s mandate.

According to Mr. Mekiliuwa, ” foreign institutions that are willing to participate in the SLB are required to appoint a local SLA in Nigeria, who will act on their behalf. It is the responsibilities of concerned parties to ensure that the securities lending contracts agreements are in compliance with the best practice and applicable laws accordingly. However, this document covers the account holding structure, securities transfers or detachments and other related processes to facilitate timely delivery of securities”.

However, CSCS will not allow lenders such as custodians or dealing firms lend shares on behalf of the owner of the shares either from a segregated or omnibus account without the Securities Lending Authorization Agreement (SLAA).

For transfers that is required by a borrower to settle short sale transactions, Mr. Mekiliuwa told the participants that the SLA and borrower would have to complete the transfer request latest by 12.00 noon, two days before settlement (SD – 2). This, he said, would allow CSCS deliver the shares into the borrower’s account a day to settlement (SD-1).

The event was attended by participants from custodian firms, settlement banks, brokers to custodians firms and The Nigerian Stock Exchange (NSE).

Share This Post

Related Posts

Press Release

CSCS advocates FinTech innovation for inclusive capital market

Lagos, Nigeria – November 14, 2023 — Central Securities Clearing System (CSCS) Plc, the leading Central Securities Depository (CSD) in Nigeria, took centre stage at the recently concluded Institute of Capital Market Registrars (ICMR) annual conference, themed “Navigating Nigeria’s Economic Realities: The Transformative Power of Technology in the Capital Market.” The event, which took place at Lagos Oriental Hotel, served

Press Release

CSCS receives prestigious Digital Transformation and Cybersecurity Advocate of The Year Award

Lagos, Nigeria – October 30, 2023 — Central Securities Clearing System (CSCS) Plc, Nigeria’s leading central securities depository, proudly announces the receipt of the highly coveted “Digital Transformation and Cybersecurity Advocate of the Year Award” at the just concluded BusinessDay’s Banks and Other Financial Institution’s Awards (BAFI) 2023 ceremony. The event took place at the Lagos Continental Hotel on Saturday.

Disclaimer

Online Portfolio Management View is a service aimed at providing investors with access to view their respective stock portfolio in addition to services provided by intermediary stockbrokerage firms. We ask that you ensure that all devices used to access the Service are adequately protected from malware and viruses. You must also take care to secure and maintain the confidentiality of your password and log-in information. CSCS shall not bear any responsibility and or be liable for any unauthorized access to your information on the Application using your log-in details.

Disclaimer

Online Portfolio Management View is a service aimed at providing investors with access to view their respective stock portfolio in addition to services provided by intermediary stockbrokerage firms. We ask that you ensure that all devices used to access the Service are adequately protected from malware and viruses. You must also take care to secure and maintain the confidentiality of your password and log-in information. CSCS shall not bear any responsibility and or be liable for any unauthorized access to your information on the Application using your log-in details.

Disclaimer

Online Portfolio Management View is a service aimed at providing investors with access to view their respective stock portfolio in addition to services provided by intermediary stockbrokerage firms. We ask that you ensure that all devices used to access the Service are adequately protected from malware and viruses. You must also take care to secure and maintain the confidentiality of your password and log-in information. CSCS shall not bear any responsibility and or be liable for any unauthorized access to your information on the Application using your log-in details.

Disclaimer

Online Portfolio Management View is a service aimed at providing investors with access to view their respective stock portfolio in addition to services provided by intermediary stockbrokerage firms. We ask that you ensure that all devices used to access the Service are adequately protected from malware and viruses. You must also take care to secure and maintain the confidentiality of your password and log-in information. CSCS shall not bear any responsibility and or be liable for any unauthorized access to your information on the Application using your log-in details.

Disclaimer

Online Portfolio Management View is a service aimed at providing investors with access to view their respective stock portfolio in addition to services provided by intermediary stockbrokerage firms. We ask that you ensure that all devices used to access the Service are adequately protected from malware and viruses. You must also take care to secure and maintain the confidentiality of your password and log-in information. CSCS shall not bear any responsibility and or be liable for any unauthorized access to your information on the Application using your log-in details.