Depositories, backbone of securities market - Chairman, CSE

The importance of depositories for the functioning of capital markets was emphasised at the 17th Annual Cross Training Seminar of the Asia-Pacific Central Securities Depository Group (ACG) in Colombo last week.

“In the global capital market arena, in which we function, the efficient and robust functioning of central securities depositories is fundamental to the efficient functioning of securities markets. In fact it is the backbone of the securities market,” Chairman, Colombo Stock Exchange (CSE) and Central Depository Systems (Pvt) Ltd (CDS) (a fully owned subsidiary of the CSE), Vajira Kulatilaka said.

“As a key pillar of the capital market services infrastructure, central depositories provide more than a supportive role to the global financial market. Today, depositories use innovative forms of technology to increase efficiency, minimise risk and reduce costs to support investors and market intermediaries and is also responsible for ensuring the safety of customer assets,” he added.

The ACG Cross Training Seminar hosted by the CDS was held in Colombo. This is the first time the CDS hosted the Cross Training Seminar.

Over 90 representatives from depositories across the region were present.

“A Cross Training seminar of this nature is a good opportunity for depositories to learn from its regional peers. As most countries have a single depository there is little opportunity forcross-exposure,” Director General, Securities and Exchange Commission (SEC), Vajira Wijegunawardene said.

The ACG Cross Training seminar is a yearly event hosted by an ACG Member, planned and managed by the host Member and the ACG Task Force, to facilitate exchange of information among working level attendees of member institutions. The host depository and task forces had sessions on pertinent areas of interest.

The ACG acts as a regional alliance and its membership structure includes 32 Depositories and Clearing organisations in 23 member countries across Asia.

- SJ