CSE launches modern CDS

The Colombo Stock Exchange (CSE) launched a state-of-the-art new generation Depository System for its fully-owned subsidiary, the Central Depository Systems (Pvt) Ltd (CDS) and an upgrade to the Automated Trading System (ATS).

A significant event on that day was the inauguration of the Bell Ringing Ceremony, from the purpose built platform on the trading floor, at the CSE's World Trade Center offices to open the day's trading.

This tradition is followed by many stock exchanges globally. The CSE in keeping with the tradition followed by many of its peer exchanges globally will open trading with the formal bell ringing ceremony on the first day of trading for all new companies listing on the CSE and at other special events.

The CSE would also make the bell ringing ceremony a regular feature by inviting special guests to perform the task.

The Bell Ringing Ceremony was launched by the Chairman of the Securities and Exchange Commission of Sri Lanka, Dr. Nalaka Godahewa and the Chairman of the Colombo Stock Exchange Vajira Kulatilaka. Directors, Management and staff of the CSE, Commission Members and Directors of the SEC, CEOs of member firms, investors, invitees and the media were also present.

The new generation CDS system lays the platform for future enhancement relating to post-trade clearing and settlement services and moving to a Delivery Verses Payment" (DVP) system of settlement and a Central Counter Party (CCP) System.

The new CDS features avant-garde technology that supports multi-asset classes and caters to the overall strategic goals of the CSE to improve trading infrastructure. The new system uses technology that comprises of a three-tier architecture which ensures system robustness, flexibility and adaptability.

The CDS for shares and Corporate Debt in Sri Lanka was first launched in 1991 and was the first depository in South Asia and one of the first depositories globally.

The 19-year-old legacy system is now being replaced as a part of the CSE's strategy for infrastructure development. The upgrade also brings the CSE on par with other Asian Exchanges, by the adoption of best practices for post-trade depository services.

This evolution from the legacy system to a system that uses cutting-edge technology is the first step in transitioning towards a more accessible platform for the end user.

"The Securities and Exchange Commission of Sri Lanka (SEC) will develop the CSE to become one of the most technologically advanced modern Stock Exchanges in the world comprising proper risk management systems and an effective Central Counter Party (CCP)," SEC Chairman Dr. Nalaka Godahewa said.

"The upgraded CDS system will offer more efficient depository services to participants and investors and lead to broad-basing the investor base and increase share ownership among the populace of Sri Lanka," he said.

"The CSE was one of the first Exchanges in the migration to a scrip-less trading environment and today, we seek to maintain that prestige by continuous improvement to our clearing and settlement infrastructure," CSE Chairman Vajira Kulatilaka said.