Central Securities Clearing System (CSCS) Plc has adopted the Society for Worldwide Interbank Financial Telecommunication (SWIFT) messaging system to enhance transactions in the market.
SWIFT provides a communication gateway that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardised and reliable environment.
This internationally recognised messaging system, which adds to the company’s existing traditional Data Exchange Platform, will definitely elevate CSCS channels of communication with its Participants particularly Custodians.
Kyari Bukar, managing director, CSCS, said the company is excited at the realisation of this achievement and he further noted that SWIFT will undoubtedly guarantee the integrity of the message channel between CSCS and participants through a safer and trusted platform.
He also noted that given the rapid growth being witnessed in the market and the continued increase of foreign investors participation in the Nigerian Capital Market, there was never a more opportune time than now to implement usage of the SWIFT platform.
Mr. Mekiliuwa head of Operations, CSCS, also reiterated the MD’s views about the integrity and reliability of SWIFT. He noted that foreign investors’ confidence would be assured and information and data transmitted amongst CSCS and its participants will be further protected.
Also speaking on the development, Segun Sanni, president, Association of Assets Custodians of Nigeria (AACN), the deployment of SWIFT is a significant new development that would translate into a steep change in volume growths and general market fortunes. He further noted that it is a massive game changer for our market and it will set Nigeria almost on the same trajectory as South Africa, Malaysia, India and other top emerging market destinations.
“Technology is a major driver of investor appetite in markets as it assures the investors of the speed, accuracy and safety of their transactions. Across markets with competing investment returns, investors would usually prefer the ones with better, safer and more efficient technology and processes. With this deployment, we can quickly move on to Straight Through Processing (STP), exchange swift messages, we can issue settlement instructions, receive trade/settlement confirmations, account balances and statements. All on a highly secure platform without much manual intervention on anyone’s part,” Sanni said.