LuSE sets up own clearing and settlement wing

By BUUMBA CHIMBULU
THE Lusaka Securities Exchange Plc (LuSE) has incorporated a wholly owned subsidiary called the Lusaka Clearing and Settlement Agency Ltd (LCSA) which will perform all clearing and settlement functions for the exchange.
The incorporation was aimed at aligning with international standards and the regulatory directives issued by the Securities Exchange Commission (SEC) to separate and operationalise the Central Share Depository.
According to the announcement by LuSE last week, the LCSA has since received a licence from the SEC to provide depository services that include automated delivery, clearing and settlement services as well as custody and note trustee services.
“The LCSA is further mandated by the Association of Numbering Agency to be the sole numbering agency for issuance of ISIN codes for securities in Zambia.
“With the incorporation of the LCSA, the LuSE is optimistic about fostering market integrity and lowering counterparty risks within the capital markets while at the same time ensuring that the LCSA effectively carries out its key role of being the settlement agent for Equity, Corporate Bonds and secondary trading of Government Bonds,” the statement reads.