As a Financial Market Infrastructure (FMI), CSCS Plc is the Clearing House of the Nigerian Capital Market.
Clearing is a post trade activity carried out before settlement. After the trade of a security has been initiated on the exchange, the exchange shares the data with CSCS Plc to begin the clearing and settlement process.
The clearing process includes computation of brokers’ and Settlement banks’ obligations and advising them on the same. It is all the arrangements or activities done at the back office to ensure seamless transfer of money and the securities transacted.
On the other hand, Settlement is the fulfilment of the obligations which involve the transfer of money from the buyer to the seller, and securities from the seller to the buyer. CSCS Plc is at the centre of all the activities that make clearing and settlement possible.
At Day T+0 (i.e Transaction Day)
At Day T (i.e Transaction Day)