The Lusaka Securities Exchange (LuSE) has announced the formation of a wholly-owned subsidiary to undertake all clearing and settlement functions, in accordance with international standards.
Chief Executive Officer Nicholas Kabaso stated that incorporating the Lusaka Clearing and Settlement Agency Ltd (LCSA) was aimed at aligning with international standards and the regulatory directives issued by the Securities and Exchange Commission (SEC) to separate and operationalize the Central Share Depository.
Kabaso said the LCSA had received the SEC license to provide depository services that include automated delivery, clearing, and settlement services as well as custody and note trustee services.
The agency will also be the sole number agency for issuing International Securities Identification Number (ISIN) codes for securities in Zambia as mandated by the Association of Numbering Agency. An ISIN is a 12-digit alphanumeric code that uniquely identifies a specific security.
“With the incorporation of the LCSA, the LuSE is optimistic about fostering market integrity and lowering counterparty risks within the capital markets, while at the same time ensuring that the LCSA effectively carries out its key role of being the settlement agent for Equity, Corporate Bonds and secondary trading of Government Bonds,” he said.
