The news we’re reading this week includes –
- Short selling receives green light in Kenya – Securities Lending Times, 16th January
The Kenyan Capital Market Authority (CMA) has given the green light to the Nairobi Stock Exchange to launch a short selling and supporting securities lending facility. It is expected to attract fresh investors, and inject liquidity into the Kenyan capital market.
The move was confirmed on the recommendation of a 2015 World Bank study on the state of liquidity in Kenya, which proposed a number of measures to improve liquidity; among which was introducing a securities lending facility.
Other report recommendations included the introduction of market makers, removing pre-funding and pre-validation checks, bringing in short selling capabilities.
Speaking of the developments, Paul Muthaura, the CEO of the CMA explained that the authority has been implementing regulatory reforms as well as introducing new products aimed at strengthening the securities industry.
- Swift signs agreement with 7 CSDs to explore blockchain for post-trade processing – Coindesk, 16th January
Swift has made a deal with seven securities depositories, including the U.S.-based Nasdaq Market Technology, Russian-based National Settlement Depository, Switzerland-based SIX Securities Services and South Africa-based Strate, to look at how blockchain can be used for post-trade processing.
The group has been named the CSD Working Group of distributed ledger technology (DLT) and it has agreed to investigate how DLT could save money and bring efficiencies to the post trade process.
The CSD Working Group of DLT was informally founded last year, but since then has formalised its requirements, adding the use of Swift’s ISO 20022 messaging standard last November.
- Switzerland reviews securities lending transaction rules – Securities Lending Times, 18th January
- The buy-side and MiFID II: It’s business as usual – The Trade, 15th January