ISSA - Intl Securities Services Association’s Post

Bond trading exchanges and platforms compete in Kenya The long-term battle to gear up fixed income trading in East Africa is on, with several contenders: https://lnkd.in/ePB83rWU. #DhowCSD, a bond trading platform offered by Central Bank of Kenya, said yesterday it had doubled users since launching in July 2023. It is an upgrade of the CBK’s Central Securities Depository (CSD) platform and is designed to boost efficiency of investing in T-Bills and T-Bonds. Earlier this year, the East African Bond Exchange EABX Group PLC got approval to launch, and said it had received oversubscription of KES 2.6bn ($19m) for its KES 2bn capital raise. It plans eventually to offer trading in both national and regional bonds too. On 7 February, the Nairobi Securities Exchange PLC announced it had received approval for a hybrid secondary market that combines both onscreen and Over-the-Counter (OTC) trading of fixed-income securities. “The hybrid model will improve pre-trade transparency through the introduction of a Quotations Board, which will provide investors with increased visibility into market quotes, thereby supporting more informed trading. The NSE also plans to launch a real-time daily yield curve that factors in the activities of the Quotations Board as well as the trades executed in the market.

Central Securities Depository of Uzbekistan (CSD) Has Been Transformed to Joint Stock Company under Central Bank of Uzbekistan Control - CSD"s Charter and Presidential Resolution. - CSD's activities on registration, accounting, safekeeping and settlements on #securities are regulated by the National Agency of Perspective Projects (NAPP, the #capitalmarket regulator), and - settlements in cash based on the results of transactions with securities – by the Central Bank; Sardor Koshnazarov, Investa #capitalmarkets #stockmarket #emergingmarkets #investing #assetmanagement #fundmanagement #investmentbanking

SFC and HKMA welcome PBoC's new measure on Northbound Swap Connect margin collateral arrangement The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) welcome the announcement of the People's Bank of China (PBoC) (9 July) to support offshore investors to use onshore bonds issued by the Ministry of Finance and policy banks on the Mainland and held under Northbound Bond Connect as margin collateral for Northbound Swap Connect transactions. This measure will provide Northbound Swap Connect investors with the additional choice of non-cash collateral, reducing their liquidity cost and improving capital efficiency. It will also help vitalise offshore investors' onshore bond holdings and further enhance the attractiveness of onshore bonds. The measure will also promote synergies between Bond Connect and Swap Connect, thereby further invigorating market participation in the Connect Schemes. #PBOC #SFC #HKMA #onshorebonds #SwapConnect

Ethiopia Central Securities Depository (CSD) System This Project aims to support the National Bank of Ethiopia (NBE) in acquiring and implementing a Central Securities Depository and Settlement (CSD) System. NBE will initially utilise the CSD system for government securities, with the ability for the system to be scaled for corporate debt securities, equities, and funds. The CSD will ensure the safe custody of securities, ensure accurate record-keeping and reporting, reduce transaction costs, minimise risk, improve efficiency in the transfer of securities, facilitate the implementation of corporate actions, and improve the integrity of transactions. The CSD will promote increased liquidity and turnover in securities markets, increase transparency, and enhance investor confidence. An efficient and effective capital market will attract diverse investors, including foreign investors, increasing the volume and diversity of trades in Ethiopia’s capital markets. The proposed CSD system will increase the efficiency of securities settlement in Ethiopia, leading to enhanced safety, lower transaction costs, and financial sector stability. The CSD will support the development of a deeper and more sophisticated domestic capital market with new asset classes, a pipeline of bankable projects and issuers and improved investment opportunities. Improved investment opportunities will lead to increased access to finance for the public and private sectors for infrastructure and other sector-specific priorities. This Project will contribute to creating economic opportunities characterised by increased access to jobs, incomes and basic services, ultimately leading to a sustainable future for Ethiopia. Implementing Partner National Bank of Ethiopia, Ministry of Finance of Ethiopia Donor(s) FSD Africa Implementation Period June 2022 – December 2023 https://lnkd.in/eK8vQhbe

Central Securities Clearing System PLC, Nigeria's premier financial markets infrastructure, wanted an IT infrastructure to ensure consistent service provision to the market, deliver a robust business contingency, and effective disaster recovery. Here’s how we helped them tick those boxes. #NutanixStories

A new structure will allow Brazilian banks to tap the IDB’s credit rating to offer FX derivatives hedges to foreign investors in local green projects at maturities as long as 25 years

PAPSS for dummies : The Pan-African Payment and Settlement System (#PAPSS) is a centralized payment, clearing and settlement system for intra-African trade payments jointly developed by the #AfCFTA Secretariat and Afreximbank which has been rolled out end of September 2021. It aims at streamlining and securing money flows across African borders by simplifying transactions made by using one of the 42 local currencies that are currently adopted in the continent. The system allows traders to complete these transactions in almost real-time (in less than two minutes) for a low fee. A recently published article explains in simple terms why this system has been developed and what are the advantages for African traders, along with its challenges. We will try to further simplify its content to explain the main reasons that are at the basis of the functioning of the PAPSS. Read more here: https://lnkd.in/e7DxhWUf

What is Investor and Exporter (I&E) Window The Central Bank of Nigeria (CBN) introduced a special trading segment called the Investors’ & Exporters’ FX Window (I&E FX Window) to enhance liquidity and facilitate the timely execution and settlement of eligible foreign exchange (FX) transactions. This window aims to deepen the FX market and accommodate the FX obligations of investors, exporters, and end-users. Purpose of the I&E Window: The primary goal of the Investors’ & Exporters’ FX Window is to enhance liquidity in the Nigerian FX market. By providing a dedicated platform for investors, exporters, and end-users, the CBN aims to accommodate all FX obligations and ensure efficient price discovery based on prevailing market conditions. Eligible Transactions The I&E Window allows for various types of transactions, including: Invisible Transactions: This category covers a wide range of transactions such as loan repayments, dividends/income remittances, capital repatriation, consultancy fees, technology transfer agreements, personal home remittances, and other eligible invisible transactions outlined in the CB Foreign Exchange Manual. Bills for Collection: Transactions related to bills for collection, which involve the collection of payments on behalf of customers, are also eligible to access the I&E Window. Trade-related Payment Obligations: Any other payment obligations arising from trade activities can be processed through the I&E Window at the customer’s discretion.

Been waiting patiently for a Nigerian Government addressing the repirt from JP Morgan that "a combination of foreign exchange forwards, securities lending, currency swaps, and outstanding contracts has weakened Nigeria’s net external reserves to an all-time low of $3.7 billion as of the end of last year". The American multinational financia institution, which we have close ties with, had reported that "Nigeria’s net FX reserves are significantly lower than previously estimated, and that whereas Nigeria's external reserves stood at $33.88 billion as of August 10, down from $37.08 billion at the end of last year (Dec 2022) according to data from the Central Bank of Nigeria (CBN) "that CBN’s net FX reserves were more like around $3.7 billion at the end of last year, from US$14.0 billion at end-2021”. A huge difference from what we thought we actually had. This statement is so serious, and the connotations are scary enough that it's paramount to self harm if government doesn't address this publicly. The economic consequences are dire.