By Peter Egwuatu
The Central Securities Clearing System, CSCS Plc has cleared and settled over 1.2 billion units of shares worth N13.86 trillion between January and November 2017.
Managing Director/CEO, Mr. Haruna Jalo-Waziri, who disclosed this on the sideline of a workshop for capital market correspondents in Lagos said activities are beginning to pick up in the equities market.
He disclosed that the capital market requires infrastructure that would help boost recoveries, adding that the CSCS has been providing and improving on facilities to investors since its existence.
He stated that the Financial Market Infrastructures (FMI) are like human backbone, stressing that a well functioning market infrastructure contributes to the stability and growth of the financial system.
According to him: “They enable fast and smooth movements, channel relevant information – settlement information, protect the channels for the transmission and reduce risk.”
Jalo-Waziri also stated that FMI can lead to dysfunctions in the financial market; misleading information and disturbed information channel; as well as systemic risk.
He also disclosed that arrangement has been put in place for investors to secure loans from banks with their shares in the custody of CSCS.
Outlining the procedure, he stated: “Investors who wish to secure loan from the banks can use their shares with the custody of the CSCS as collateral. What investor needs to do is to apply and notify the CSCS and then agreement will be signed among the parties. The CSCS is involved in payment system as it deals with sets of instruments, infrastructures, procedures, and rules for the transfer of funds between and among participants.”