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Clearing & Settlement

WHAT WE DO

Clearing and Settlement

CSCS as Nigeria’s premier CSD provides efficient clearing and settlement services across multiple asset classes traded on recognized exchanges. This service reduces risk to investors. CSCS provides post trade clearing, netting, and settlement for trades executed on these exchanges.

CSCS robust risk management practices and default handling procedures ensures orderly and timely settlement of trades, even in the event of a participant default.

Key Features

Robust risk management framework

Timely settlement (T+2)

Netting reduces settlement obligations and operational costs

Gross Settlement

CSCS performs settlement of transactions on a one-to-one basis without netting

  • Supports high-value or special transactions

  • Reduces counterparty risk

  • Enables precise bilateral settlement for specific instruments

OTC Transaction Settlement

CSCS provides secure post-trade settlement for Over-The-Counter (OTC) transactions involving fixed-income instruments, and other eligible securities. The service ensures raccurate recoding, Delivery-versus-Payment (DvP), and risk-controlled settlement for bilateral trades executed outside exchanges.

  • Supports multiple OTC markets and instruments

  • Ensures DvP settlement and reduced counterparty risk

  • Facilitates bilateral negotiation while maintaining centralized clearing discipline

  • Provides accurate trade capture and reconciliation

  • Enables institutional off-market transactions with full regulatory compliance

  • Reduces settlement risk and improves operational efficiency

Securities cleared and settled by CSCS Plc include:

BONDS:

CSCS Plc actively clears and settles State bonds, Corporate bonds, Agency bonds, Federal bonds and Supranational bonds.

EQUITIES:

All registered shares traded on partner exchanges are cleared and settled by CSCS Plc.;

MONEY MARKET INSTRUMENTS:

Money market instruments cleared and settled by CSCS Plc include;

  • Treasury Bills: CSCS Plc clears and settles Treasury bills issued by the Central Bank of Nigeria (CBN).
  • Commercial Papers.
  • Bankers Acceptance.

SETTLEMENT PROCESS

Settlement Cycle for Equities

At Day T+0 (i.e Transaction Day)

  • Execution of trades on the floor of the Exchange by Brokers/Dealers.
  • Matched and confirmed trades are transmitted to CSCS Plc clearing system.
  • CSCS Plc sends net financial obligation (interim settlement report) to stockbroking firms, custodian and settlement banks by 4:00 pm (GMT+1) daily.

Day T+1 

  • Settlement bank escalates any unfunded cash settlement account to CSCS Plc on or before 12:00 pm.
  • CSCS Plc sends final net settlement advice to all Settlement Banks before the end of the day; reporting final and irrevocable settlement obligation.
Day T+2 
  • CSCS Plc sends the NIBSS settlement report by end of day reporting final and irrevocable settlement obligation for all settlement banks.
  • Stockbroking firms/custodians must have funded their settlement accounts with the bank on or before 4:00 pm.
  • Settlement banks to escalate final unfunded cash settlement account to CSCS Plc before the close of business (4:30 pm).

Day T+3

  • Securities settlement takes place at CSCS Plc at 8:00 am.
  • NIBSS cash settlement takes place at 8.00 am. 
  • NIBSS sends settlement confirmation to CSCS Plc.

Settlement Cycle for Debt Securities (The Exchange)

At Day T (i.e Transaction Day)

  • Execution of trades on the floor of the Exchange by Brokers/Dealers.
  • Matched and confirmed trades are transmitted to CSCS Plc clearing system.
  • CSCS Plc sends net financial obligation (interim settlement report) at the end of the day to stockbroking firms, custodian and settlement banks by 4:00 pm (GMT+1).

Day T+1

  • Settlement bank escalates any unfunded cash settlement account to CSCS Plc on or before 12:00pm.
  • CSCS Plc sends final net settlement advice to all Settlement Banks before end of the day; reporting final and irrevocable settlement obligation.
  • CSCS Plc sends the NIBSS settlement report before the end of the day, reporting final and irrevocable settlement obligation for all settlement banks.
  • Stockbroking firms/custodians must have funded their settlement accounts with the bank on or before 4:00 pm.
  • Settlement banks to escalate final unfunded cash settlement account to CSCS Plc before the close of business (4:30 pm).

Day T+2

  • Securities settlement takes place at CSCS Plc at 8:00 am.
  • NIBSS cash settlement takes place at 8:00 am. 
  • NIBSS sends settlement confirmation to CSCS Plc.

Settlement Cycle for Debt Securities (OTC)

  • The Exchange transmits pre-matched trades to CSCS Plc clearing system latest by 10:00 am on Settlement day (Day T + 2),
  • CSCS Plc validates trade parameters and forwards status report to the Exchange for corrections where applicable.
  • All corrections must be reported to CSCS Plc clearing system within thirty (30) minutes after notification.
  • On Settlement day, CSCS Plc will effect the delivery of securities and advise the Exchange accordingly.
  • Primary Dealers Market Makers (PDMMs)/Dealers that subscribe to CSCS Plc online services can view their bond portfolio via the website

Disclaimer

Online Portfolio Management View is a service aimed at providing investors with access to view their respective stock portfolio in addition to services provided by intermediary stockbrokerage firms. We ask that you ensure that all devices used to access the Service are adequately protected from malware and viruses. You must also take care to secure and maintain the confidentiality of your password and log-in information. CSCS shall not bear any responsibility and or be liable for any unauthorized access to your information on the Application using your log-in details.

Continue to Portal

Disclaimer

Online Portfolio Management View is a service aimed at providing investors with access to view their respective stock portfolio in addition to services provided by intermediary stockbrokerage firms. We ask that you ensure that all devices used to access the Service are adequately protected from malware and viruses. You must also take care to secure and maintain the confidentiality of your password and log-in information. CSCS shall not bear any responsibility and or be liable for any unauthorized access to your information on the Application using your log-in details.

Continue to Portal

Disclaimer

Online Portfolio Management View is a service aimed at providing investors with access to view their respective stock portfolio in addition to services provided by intermediary stockbrokerage firms. We ask that you ensure that all devices used to access the Service are adequately protected from malware and viruses. You must also take care to secure and maintain the confidentiality of your password and log-in information. CSCS shall not bear any responsibility and or be liable for any unauthorized access to your information on the Application using your log-in details.

Continue to Portal

Disclaimer

Online Portfolio Management View is a service aimed at providing investors with access to view their respective stock portfolio in addition to services provided by intermediary stockbrokerage firms. We ask that you ensure that all devices used to access the Service are adequately protected from malware and viruses. You must also take care to secure and maintain the confidentiality of your password and log-in information. CSCS shall not bear any responsibility and or be liable for any unauthorized access to your information on the Application using your log-in details.

Continue to Portal

Disclaimer

Online Portfolio Management View is a service aimed at providing investors with access to view their respective stock portfolio in addition to services provided by intermediary stockbrokerage firms. We ask that you ensure that all devices used to access the Service are adequately protected from malware and viruses. You must also take care to secure and maintain the confidentiality of your password and log-in information. CSCS shall not bear any responsibility and or be liable for any unauthorized access to your information on the Application using your log-in details.

Continue to Portal