The Central Security Clearing System (CSCS), a subsidiary of the Nigerian Stock Exchange (NSE) has raised its standards in terms of operations with the three working days after transaction (T+3) system of operation. A source at the CSCS office located at the NSE in Lagos Nigeria today made this disclosure to Proshare NI.
“The CSCS with this development has gone a long way. Many advanced countries are today operating the five working days after transaction (T+5), you cannot believe it and yet we are T+3” the source said.
The source confirmed to Proshare NI that countries like South Africa often used as role models in the African Continent has their Central Securities Depository (CSD) hosted at the London Stock Exchange (LSE), while that of Nigeria is located within. “Our Brokers trade instantly report to our data base here in Nigeria, their data base is in London; this shows we have raised our standard” he said.
This trend the source confirmed to Proshare NI; helped the turn around time and created a high level of dynamism, “if you buy, every three working days you can get paid” the source declared.
The source attributed this development to a high robust system and the capability to operate even a T+0 system. “It is parameter driven we can make it T+0, if we are able to clear our cheques the same day, we can buy and sell the same day; this is why you see the volume of transaction very high in Nigeria” he said.
