In reference to an article appearing today in a section of the media on the Automated Trading and Settlement System for bonds, the Capital Markets Authority reiterates its keenness to facilitate the introduction of an automated trading and settlement system for bonds.

The Authority however indicates that; ‘in approving an Automated Trading and Settlement System for bonds, the Authority has to satisfy itself of the integrity of the system by ensuring it fully complies with the Capital Markets Act and regulations with a view to ensuring that the wide interests of the capital markets are safeguarded’.

The Authority further says that the matters raised in the article are under regulatory review, adding that all the stakeholders (NSE, CDSC, CBK) have remained fully engaged on the requirement of the Automated Trading and Settlement System within a framework of a sub-committee that was formed in early October 2009 to not only fast-track this automation but rather to also ensure that it is as seamless as possible.

With regard to the trading of Kengen bond, the Authority indicates that paragraph 16.1 (26- 29) of the approved Kengen Public Infrastructure Bond Offer Information Memorandum explain clearly how this will be done in the event that CDSC and NSE will not have activated the CDS system for bonds by the time the Kengen bonds are listed.