|
|
- Depository
In an effort to address the fundamental difficulty of share transfer, CSCS established a depository for all share to be traded on the floors of The Nigerian Stock Exchange which must have their certificates deposited in the Depository for the account of the selling stockbroker prior to being eligible for trading on a particular day
- Provision of a Sub-registry
The CSCS successfully constructed a Depository with a vault that has met international standard. This serves as interface between cscs and the registries of the quoted companies.
- Trade Guarantee Fund (TGF)
Trade Guarantee Fund as distinct from the Investors Protection Fund was put in place by the stockbroking firms and managed by the settlement banks.
It is a necessary component of the Clearing House System .
Any over-trading by brokers beyond what the funds in their Trading Account can cover is settled from the Fund.
Under the T+3, any over-trading is allowed to settle and no cancellation of trades.
However, defaulting stockbroking firms are penalized.
It is interesting to note that no over-trading has occurred because of the discipline of brokers.
- Automation of The Trading System (ATS)
Automated Trading System (ATS) is electronic trading in shares through computers by stockbrokers on the trading floor of The NSE.
The ATS is tightly coupled with the CSCS Computer system and makes over-trading in stocks impossible.
The ATS is faster, enhance transparency and removes human moderation of trades and therefore makes appropriate price discovery possible.
Stockbroking firms now migrate to their offices and trade through remote control.
With the Trade Guarantee Fund (TGF) and the Automated Trading System (ATS) tightly coupled with CSCS computer, there is no more cancellation of trades.
Thus, the maxim "my word is my bond" in the market is not only apparent but real.
|