We are pleased to inform all our stakeholders that the annual review by Thomas Murray of the report for Kenya Central Depository and Settlement Corporation (CDSC) for 2020 has been completed.
CDSC has maintained an overall risk assessment level: A and CSD flash impact: Stable.
Some of the major developments that contributed to the upgrade from "A-" to "A" as at the end of 2019 were;
- Implementation of the new CSD System;
- Removal of securities pre-validation;
- Addition of a second daily settlement batch;
- Addition of new penalties in relation to failures as a result of the removal of pre-validation;
- Introduction of a Buy-in board;
- Introduction of Securities Lending and Borrowing;
- Enhanced controls through Maker-Checker approvals.
Further market updates
CDSC will in January 2021, commence the testing for Phase II of the Central Depository System (CDS) upgrade. The first iteration of testing will cover SWIFT integration between CDSC and market participants.
The scope of testing shall include the following:
- Over The Counter (OTC) SWIFT Trades:
- From brokers in OTC market;
- Status updates to OTC market participants;
- Settlement confirmation on OTC market trades received via SWIFT.
- Account Statements:
- Holdings and Transactions by subscription;
- Holding and Transactions via SWIFT