What Is A Central Depository System

What Is A Central Depository System – 1 Central Depository System and Regional Integration Peter M. Waiaki* Chief Executive Officer Central Depository and Settlement Corporation Limited The people of Kenya see things as they are and ask why? , I dream of the way things should be and I ask why? George Bernard Shaw Introduction: The program read dinner and entertainment in the next lesson, no doubt better than sitting around listening to someone else talk at the end of the day. For this reason, I intend to briefly tell you my method in this article to present you with very interesting opportunities, perhaps I am excited about the prospect of integration in the African region. In this presentation, we will briefly touch on: Kenya’s CDS experience, its key features, how CDS can be a catalyst for regional integration and what supports regional integration. CDS in Kenya The Kenyan CDS experience has a long and short history. It is old, because it has been considered and energy and brains, money, emotions and other resources have been put into it; Short because it has been working for a very short time: 14 days today to be exact. The CDS road in Kenya is long, windy and torturous, perhaps unlike anywhere else in Africa – but not necessarily. We were facing another problem and faced many challenges. The concept of CDS emerged early, and at least ten years pass from the opening of the first account in the Central Depository System to 10 November 2004, marking the arrival of CDS in Kenya. From 1995 to 2000 when we were not stopped by the same law, we were struggling with a financial deficit and trying to find Source 1.

2 Financial support for infrastructure; When we weren’t grappling with the corporate governance issues of the new CDS unit, we were dealing with a broken software vendor and urgent front-end negotiations. The list of battles, struggles, obstacles and challenges is endless. I highlight this only to point out the challenges that anyone proposing this path may face but avoid. But now we have CDS which as of today has six hundred and seventeen (617) securities accounts, 113,266 share deposits and Ksh. $3,833,698 worth of advertising in 2 weeks. What this tells me: Automation of capital markets is inevitable. What are some key features of CDS in Kenya? Kenyan capital markets adopted Module II CDS with DVP participants on day five. Perhaps like other third world countries, many people will not be able to get money from the business because there are not enough banks to help them pay in real time. Even in areas where banks are located, there is a delay in receiving revenue from sales as banking systems may not yet have a real-time payment system. Exchanges and custodian banks participating in the settlement system will enjoy multiple financing with its attendant benefits, which are not available in the manual system. CDS supports both stability and entertainment. Deregistration in this jurisdiction corresponds to the withdrawal and central possession of securities certificates still accepted as evidence of ownership, and another stage where the withdrawal certificates no longer exist and, if present, are derecognised. Legal entities. It is not recognized as evidence. the right. We recognize that some of the markets represented here use these terms differently or have different meanings. The situation in Kenya is that we must go for stability first and then abandon austerity. CDS can settle up to T+1. However, keeping in mind the existing payment systems, the market has decided to stay in the T+5 cycle, facilitating instant settlement up to T+1 when requested by the parties to the transaction. Although we’ve said before that we’re in the T+5 cycle, it’s a poor secret that people wait weeks, sometimes months, to receive their certificate after purchase. This is unavoidable in a manual processing environment, and the unnecessary opportunity to link the system through the sale of mixed certificates and partial certificates. 2

What Is A Central Depository System

3 The arbitration system ensures arbitration through a guarantee fund, which will grow over time, ensuring that arbitration failure does not occur without reason or at the expense of the participant. The guarantee fund consists of predetermined shareholder contributions and taxes paid by investors to their shareholders. On the other hand, a set of risk management measures ensures that problems arising during the settlement process are identified early and dealt with in a timely manner. The settlement process is based on a common settlement bank where each participant has a settlement account where their net liabilities are calculated or deducted on each settlement date. Initially CDS will only settle equity, settlement of fixed income securities will start within six months. CDS is operated by an integrated stock exchange company, whose design is to ensure the independence of settlement and distribution and risk management of the institution from the market players in the hands of the exchange, based on the structure as a limited liability company. ah Their members are the people in the market. However, to maintain the requisite relationship with the stock exchange, the law requires the stock exchange to be a shareholder of the CDS entity. These are the most important features. Why CDS in Kenya? The international reason why Kenya needs CDS is that any stock market with any growth potential needs an electronic and centralized storage and settlement system. These are the only reasons to consider having a regional or regional CDS. Reducing and if possible eliminating market risk. Manual systems are fraught with systemic risks, liquidity risks, unavailability and non-distribution risks. There is always a risk of providing duplicate certificates and thereby losing market reputation. Realizing the effectiveness of the long time it takes to register and operate businesses in the mobile environment actually brings costs and opportunity costs to both buyers and sellers. DVP is not verified in manual system. The trend in many markets has been to create smarter trading systems with associated risks, as protectionism is lost. Compliance with international standards for distribution and disposal. The G30 standards specify required delivery and disposal parameters, including short disposal cycle and DVP, which cannot be precisely set and verified by manual systems. No attractive prospect 3

Pdf) The Securities Holding System In Ghana After The Central Securities Depository Act

4 The flow of capital into our capital markets, or keeping capital here and preventing it from going abroad, depends on compliance with internationally accepted, established and expected standards. These will be gradually achieved through the use of CDS. The desire to completely organize the business process with assistant or result and follow the development of the product that is difficult to create, trade and promote the foundation of the manual. There is clear recognition that CDS is the first segment of the direct market. Commitment to an efficient, fair and orderly market. According to the law, justice should not only be done but also seen to be done. Similarly, transparency should not only exist in the stock market but should also be visible. CDS has an important hand in this. Desire for growth and expansion. The style of the book is not flexible at all. It hinders growth in both production and quantity due to complex mechanical processes that cannot be handled by an automated system. Challenges: I believe that making the right decisions in every situation is a big challenge. Clearly, I repeat this should not be the case, financing infrastructure in Africa north of Limpopo and south of the Sahara has always been a problem. Funding in our case has come primarily from shareholders and more recently from shareholder-backed bank funds. In addition to the funding issue, there are several challenges: Establishing the right legal and regulatory framework. This is a big challenge. It is important to have a strong and appropriate structure that responds to the needs of the market and is flexible enough to adapt to technological developments but sufficient to ensure that the desired transparency is not lost. Choosing and implementing the right business and market model is essential