The National Bank of Ethiopia (NBE) have launched an ambitious project to modernize Ethiopia's securities infrastructure with the implementation of a Central Securities Depository (CSD).
NBE has contracted Montran, a US-based financial technology solutions provider, to assist the regulatory body design and build the new CSD system.
A Central Securities Depository acts as the official record keeper of securities ownership and transactions.
It electronically records securities balances and facilitate the settlement of securities transactions, helping to reduce risks and costs associated with paper-based systems.
The new CSD project aim to digitalize post-trade activities in Ethiopia's capital markets and promote safer and more efficient trading, clearing and settlement of securities like equities and bonds.
It will allow issuers and investors to settle transactions electronically through a book-entry transfer of securities as opposed to physical delivery of paper certificates.
Montran will leverage its experience and technology to design, implement and integrate the requisite infrastructure like a securities depository module, registry module, transfer agent module and an integrated risk management system.
Montran has 500+ mission critical installations for Commercial Banks, Corporates, as well as Central Banks and Infrastructure Providers in over 80 countries, according to an information posted on its website.