CSCS gets recognition for risk management
The Central Securities Clearing System Plc says it has been upgraded by Thomas Murray, the global post-trade risk and custody specialists, from A to A+, in risk management.
The firm said in a statement that the A+ rating denoted a ‘low overall risk’.
It said the overall assessment of ‘A+’ reflected a weighted average of seven risk components.
The statement read in part, “The assessment for asset servicing risk has been omitted from the overall risk assessment since the CSCS takes no active part in the entitlement calculation or processing of corporate actions in the market.
“The outlook for the CSCS risk assessment is ‘positive’ owing to the fact that there are a lot of pending developments scheduled for implementation within the short- to medium-term.
“Official time schedules have not been announced in all cases, but it is anticipated that, upon implementation, these developments have the potential to improve the risk assessment of CSCS.”
According to the statement, one of such developments includes the firm becoming a direct member of the Central Bank of Nigeria’s Real Time Gross Settlement system, ensuring that delivery versus payment settlement is realised for both on-exchange and over-the-counter transactions by linking the securities leg and cash leg of settlement.
It said the CBN approval would be required prior to establishing a link, meaning that the timeframe would be largely dependent on the CBN.
The Managing Director/Chief Executive Officer, CSCS, Mr Haruna Jalo-Waziri, described the upgrade as a significant milestone towards being a globally respected and leading central securities depository in Africa.
He said, “The key upgraded areas further indicate that we have made notable improvements in managing our market’s overall risks as we increasingly continue to align ourselves with global best practices.
“I am extremely proud of the collective efforts made over the years by our committed staff to enable us to make such progress.”
The Director, Head of Operations, Thomas Murray, Mr Jim Micklethwaite, said the overall risk assessment of CSCS recognised the significant and widespread improvements to processes and controls put in place over the last few years, particularly due to the upgraded functionality within its new core system, TCS BaNCS.
He said the rating firm would monitor the CSCS’ improvements as they continued to adopt international best practices.