Africlear Global, The Central Securities & Clearing System (CSCS Nigeria) and the Central Depository & Settlement Corporation (CDSC Kenya) have announced their plans to establish a platform aimed at facilitating post trade services including cross-border clearing and settlement of capital market transactions between Nigeria and Kenya.

Rose Mambo, Africlear Chairman and CDSC Kenya CEO, said the envisaged platform will enable central security depositories (CSDs) to benefit from enhanced risk management and improved capital efficiency through multilateral netting and simplified initial and variation margin exchange.

“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 said.

“By linking the clearing and settlement functions of CSCS Nigeria and CDSC Kenya through a single, centralized Platform, we will achieve significant cost benefits and improved economies of scale whilst developing a standardised post-trade environment,” she added.

Africlear Director and CSCS Nigeria MD/CEO Kyari Bukar foresees a fully integrated post-trade environment for cross-border clearing and settlement of Nigerian and Kenyan capital market transactions.

“The envisaged Platform not only enhances our ability to facilitate cross-border clearing and settlement, but also streamlines transaction processing cycles and centralizes risk management protocols through the use of scalable, robust open-industry architecture,” he said.

“It will reduce transfer charges, eliminate excessive FX commissions and manage risk exposure across asset classes,” he added.

Anthony Fischli, Africlear Director and Altree Financial Chairman, envisages the platform to be a secure and efficient means through which to facilitate cross-border clearing and settlement of capital market transactions.

“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,” he said.

“Africlear looks forward to working with CSCS Nigeria and CDSC Kenya on this groundbreaking new initiative,” he said.

Africlear Global delivers information technology and support services to central security depositories operating in Africa.

The company was founded by CDSC Kenya, CSCS Nigeria and Altree Financial with the goal of improving African securities market infrastructure by providing CSDs with the ability to offer a greater menu of value-added services whilst reducing the underlying costs associated with system acquisition and maintenance.

Central Depository and Settlement Corporation (CDSC) Kenya is approved by the Capital Markets Authority of Kenya and serves as the quality provider of clearing and settlement services to the Kenyan capital markets.

Central Securities Clearing System (CSCS) Nigeria is licensed by the Securities and Exchange Commission of Nigeria and serves as the clearing and settlement house for the Nigerian capital markets and The Nigerian Stock Exchange.

Altree Financial Group is an integrated financial services company licensed to conduct Investment Business by the Bermuda Monetary Authority.