CSCS launches new SWIFT messaging system

The Nigerian capital market is set for a major transformation as the Central Securities Clearing System (CSCS) Plc has adopted the Society for Worldwide Interbank Financial Telecommunication (SWIFT) messaging system to enhance transactions in the market.

SWIFT is meant to serve as communication gateway that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardised and reliable environment.

This internationally recognised messaging system, which adds to the company’s existing traditional Data Exchange Platform, will definitely elevate CSCS channels of communication with its participants, particularly custodians.

Speaking on the latest innovation, the Managing Director, CSCS, Mr. Kyari Bukar, said the company is excited at the realization of this achievement and further assured operators of more to come.
Bukar expressed optimism that SWIFT would undoubtedly guarantee the integrity of the message channel between CSCS and participants through a safer and trusted platform.

He also noted that given the rapid growth being witnessed in the market and the continued increase of foreign investors participation in the Nigerian capital market, there was never a more opportune time than now to implement usage of the SWIFT Platform.

The Head of Operations, CSCS, Mr Mekiliuwa, in his comment, said SWIFT would boost foreign investors’ confidence while information and data transmission amongst CSCS and its participants would be further protected.

The President, Association of Assets Custodians of Nigeria (AACN), Mr. Segun Sanni, described SWIFT innovation as a significant development that would translate into a steep change in volume growths and general market fortunes.

He further noted that “it is a massive game changer for our market and it will set Nigeria almost on the same trajectory as South Africa, Malaysia, India and other top emerging market destinations”.

“Technology is a major driver of investor appetite in markets as it assures the investors of the speed, accuracy and safety of their transactions. Across markets with competing investment returns, investors would usually prefer the ones with better, safer and more efficient technology and processes”, he also said.

Sanni added that “with this deployment, we can quickly move on to Straight Through Processing (STP), exchange swift messages, we can issue settlement instructions, receive trade/settlement confirmations, account balances and statements. All on a highly secure platform without much manual intervention on anyone’s part”.

He explained that no one would need to subject any message received from his or her counterpart to any signature verification or similar process due to the impregnable security of the SWIFT channel.