Nigerian Exchange Limited (NGX) said it is working with the Central Securities Clearing System (CSCS) Plc and other stakeholders to reduce the settlement cycle from T+3 to T+1 over the next few years.
The NGX planned to reduce settlement cycle due to the current reforms and competition among exchanges in global financial markets
The Exchange also disclosed that it will continue to seek and explore the use of advanced technological tools such as Straight Through Processing (STP) of equity transactions to enhance transparency in the Nigerian capital market (NCM).
The Divisional Head, Capital Markets, NGX, Jude Chiemeka stated this during the virtual NGX Retail Workshop themed; STP of Equity Transactions, organized in collaboration with Central Securities Clearing System (CSCS) Plc and United Capital in Lagos.
Chiemeka, while commending CSCS and United Capital, explained that the equities market is constantly evolving and it is imperative that the Exchange keep up with the latest trends and technologies to ensure that as a platform provider, it provide investors the best possible service.
According to him, STP is a mechanism that automates the end-to-end processing of transactions of financial instruments and also provides a means of electronically capturing and processing transactions from the point of first deal to final settlement.
