Committed to
facilitating the development of efficient systems for the settlement of
transactions, the Securities and
Exchange Commission (SEC), in collaboration with the Central Bank of Nigeria (CBN), has issued guidelines for the
settlement of all types of securities in Nigeria.
The
guideline is expected to promote competitive, efficient, safe and sound post
trading arrangements in Nigeria. This will ultimately lead to greater
confidence in securities markets, boost investors’ protection and limit
systemic risk. In addition, it would also improve the efficiency of the market
infrastructure, which should in turn, promote and sustain the integration and
competitiveness of the Nigerian securities markets.
According to a report released by both regulatory authorities, the rules set out the procedures for the settlement of securities in Nigeria, including the rights and obligations of the parties. It also covers the settlement procedures and settlement cycle for the trades executed in the exchanges such as the Nigerian Stock Exchange (NSE), traded securities, FMDQ Over The Counter (OTC) Securities.
Others are
NASD Over The Counter (OTC) Securities, the Nigerian Commodity Exchange (NCX)
traded securities and Afex Commodities Exchange. Parties to securities
settlement in Nigeria, according to the regulatory guidelines include the
Capital Market Registrars, CBN, Central Securities Clearing System (CSCS) Plc,
Central Securities Depository- Clearing & Settlement Agent, Custodians,
Dealing Members Firms, and a host of others. It added that as a general rule,
any securities transaction must trade or be reported through a licensed
Exchange in line with the standard settlement guidelines. (Guardian)
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