COLOMBO, Dec 02, 2014 (EconomyNext) – The Colombo Stock Exchange (CSE) said it had upgraded its electronic trading and settlement infrastructure to enable quicker payment and protect investors against the risk of default.
A statement said the CSE launched a new generation depository system for its Central Depository Systems (CDS) and upgraded the Automated Trading System.
The new CDS was supplied by Millennium IT Software (Private) Limited, now part of the London Stock exchange group.
It lays the platform for future enhancements relating to post-trade clearing and settlement services and moving to a Delivery Verses Payment (DVP) system of settlement and a Central Counter Party (CCP) System.
The CCP will create a pool of funds to ensure protection of investors in the event of a trade default when the buyer does not pay while the DVP will ensure payment on delivery of shares against the current payment after three working days.
"An easily accessible system that is both secure and without impediments enhances the user experience of our ultimate stakeholders – our investors," CSE Chairman Vajira Kulatilaka said.
Securities and Exchange Commission (SEC) Chairman Nalaka Godahewa said the regulator intends to develop the CSE to have proper risk management systems and an effective Central Counter Party.
MillenniumIT chief executive Mack Gill said the new CDS supports multi-asset classes enabling trading of futures, derivatives and other instruments in future.
The CSE also inaugurated a ‘Bell Ringing Ceremony’ on the trading floor to formally declare open trading, in keeping with a tradition is followed by stock exchanges globally.