Africlear Global has signed a memorandum of understanding with Nigeria’s Central Securities & Clearing System (CSCS Nigeria) and the Kenyan Central Depository & Settlement Corporation (CDSC Kenya), to establish a post-trade services platform, including clearing and settlement for capital market transactions between Nigeria and Kenya.
The platform intends to give central securities depositories better risk management and capital efficiency through multilateral netting and a simpler initial and variation margin exchange.
It will create an integrated, secure and efficient post-trade environment for cross-border clearing and settlement for Nigerian and Kenyan capital market transactions.
Rose Mambo, chair of Africlear chairman and CEO of CDSC Kenya, said: “We have been working with the post-trade community and other industry stakeholders to design the most effective way to achieve cross-border clearing and settlement.”
She added: “By linking the clearing and settlement functions of CSCS Nigeria and CDSC Kenya through a single, centralised platform, we will achieve significant cost benefits and improved economies of scale whilst developing a standardised post-trade environment.”
Kyari Bukar, a director of Africlear and managing director and CEO of CSCS Nigeria, said: “The envisaged platform not only enhances our ability to facilitate cross-border clearing and settlement, but also streamlines transaction processing cycles and centralises risk management protocols through the use of scalable, robust open-industry architecture.”
Bukar added, “It will reduce transfer charges, eliminate excessive FX commissions and manage risk exposure across asset classes.”
Africlear was founded by CDSC Kenya, CSCS Nigeria and Altree Financial, with the aim of improving African securities market infrastructure. Providing IT and support to African CSDs, it allows them to offer a greater variety of services, while reducing the underlying costs of acquisitions and system maintenance.
Anthony Fischli, an Africlear director and chairman of Altree Financial, said: “We believe this platform will streamline transaction processing cycles and centralise risk management protocols in the post-trade environment. This will increase intra-Africa trade and financial integration across the region.”
