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The Central Securities Clearing System (CSCS) and the Capital Market Correspondents Association of Nigeria (CAMCAN) on Tuesday held a meeting to discuss market growth and development.
The CSCS Managing Director, Shehu Yahaya Shantali, shared his vision that would further grow and develop the organization.
CAMCAN has been actively promoting the Nigerian capital market through research, advocacy, and dialogue with policymakers. The association has been working to strengthen the market’s role in economic recovery and long-term growth.
The Central Securities Clearing System (CSCS) Plc is Nigeria’s premier financial market infrastructure (FMI), serving as the central depository, clearing, and settlement agent for the Nigerian capital market. It acts as a trusted intermediary, automating the transfer of securities (equities, bonds) from sellers to buyers, promoting market efficiency, security, and reducing settlement risks.
Key functions of the CSCS in the capital market include:
Central Depository & Custody: Acting as the custodian for securities traded, the CSCS maintains electronic records (book-entry) of ownership, eliminating physical share certificates (dematerialization).
Clearing and Settlement: It clears and settles all transactions executed on the Nigerian Exchange Limited (NGX), NASD OTC Securities Exchange, and other exchanges.
Delivery versus Payment (DvP): The CSCS ensures the simultaneous exchange of cash and securities, ensuring that a buyer’s money goes to the seller while securities go to the buyer, minimizing risks.
Risk Management: The CSCS employs robust risk management practices, including default handling procedures to ensure transaction settlement.
Investor Identification: It issues Central Clearing House Numbers (CHN) for investors and provides Legal Entity Identifier (LEI) services to track transactions.
Registrar Support: The CSCS ensures accurate and prompt registration of ownership transfers following transactions.
Supported by the Securities and Exchange Commission (SEC) and other regulators, the CSCS handles 99.3% of all trades in the Nigerian capital market, functioning as a critical, technology-driven infrastructure that provides confidence, efficiency, and safety.
