WINDHOEK, Dec. 4 (Xinhua) -- Namibia on Thursday launched a Central Securities Depository (CSD) to improve market liquidity, making it easier for domestic and international investors to participate in the country's securities market.
The CSD, developed by the Namibia Securities Exchange (NSX) in partnership with the Bank of Namibia and overseen by the Namibia Financial Institutions Supervisory Authority, replaces paper-based securities with a fully electronic system for registration, clearing, and settlement.
According to a joint statement, the launch followed regulatory reforms that lifted more than a decade of restrictions on establishing a CSD.
After receiving its license in March 2024, the NSX and the Bank of Namibia collaborated with market participants to design the new post-trade infrastructure, according to the companies.
The electronic platform is expected to shorten settlement cycles, reduce operational and counterparty risk, and provide transparent, real-time ownership records, while also streamlining corporate action processing and facilitating the transition to delivery-versus-payment settlement.
In the coming months, the NSX and the central bank will onboard all market participants, migrate existing securities into the electronic environment, and fully automate the new settlement framework, according to the statement.
Five institutions, including Rand Merchant Bank, Standard Bank Namibia, NSX Financial Market Services, the Bank of Namibia, and Nedbank Namibia, have been approved as CSD participants. ■
