GBOLABO AFUWAPE
Global Legal Entity Identifier Foundation (GLEIF) has accredited the Central Securities Clearing System (CSCS) to perform all Local Operating Unit (LOU) services in Nigeria.
The announcement of the accreditation was contained in a letter dated 26 November 2018 addressed to the company after a satisfactory inspection visit by a team of GLEIF representatives.
The letter signed by Stephan Wolf, the Chief Executive Officer of GLEIF, read in part “please be advised that CSCS Nigeria is being granted authorization to perform all LOU services as defined in the Master Agreement and its Appendices.
The Central Securities Clearing System Plc (CSCS Plc) was incorporated in 1992 as a Financial Market Infrastructure (FMI) for the Nigerian Capital Market. It was commissioned in April, 1997, and started operations in the same month.
In May, 2012, CSCS became a Public Liability Company (Plc) by a special resolution and licensed by the Securities and Exchange Commission (SEC) as a central depository, clearing, and settlement agency for transactions in the Nigerian Capital Market. It operates a computerized system for transactions in securities in the market.
“As previously stated, please be assured that the entire GLEIF organization is here to assist and support your efforts and bringing continuous improvement to the entire GLEIS system by facilitating a dedication to “best of breed” practices and methodologies in service and operations”.
In his reaction, Mr. Haruna Jalo-Waziri, the Managing Director/Chief Executive Officer, CSCS Plc, said “we are delighted at this accreditation by GLEIF. CSCS is the only entity in Nigeria that can perform this function. The Legal Entity Identifier (LEI) would enable firms to strengthen the accuracy, integrity, and aggregation of data across entities and subsidiaries and thus improve counterparty risk data and management, as well as supporting enhanced data modeling and analysis”.
Mr. Jalo-Waziri added that “LEI system will allow precise and accurate regulatory reporting, as well as support the production of data for recovery and resolution planning. This will inherently lead to operational efficiency that would allow for easy reconciliation of data. I encourage all business entities and organizations to acquire the LEI code or apply to CSCS for renewal if they have already registered”.
Owing to its effectiveness in other jurisdictions, the LEI code is a mandatory global requirement that enables market operators to perform capital market functions; this will further deepen the Nigerian capital market and provide veritable identification of organizations, therefore compliance with this requirement.
A Legal Entity Identifier is a 20-character identifier that identifies distinct legal entities that engage in financial transactions. It is defined by ISO 17442. Natural persons are not required to have an LEI; they are eligible to have one issued, however, but only if they act in an independent business capacity.
Comments are closed.