CSE Clear completes first year, clears Rs. 1.19 trillion in market transactions
CSE Clear (Private) Limited, Sri Lanka’s first Central Counterparty (CCP), yesterday marked its first anniversary, completing a landmark year in strengthening the country’s capital market infrastructure through enhanced clearing, settlement efficiency and risk management.
A wholly owned subsidiary of the Colombo Stock Exchange (CSE), CSE Clear was established to mitigate counterparty risk by acting as the intermediary between buyers and sellers, ensuring the integrity of post-trade processes and providing greater certainty in settlements. The introduction of the CCP model is regarded as one of the most significant reforms to Sri Lanka’s securities market in recent decades, aligning the country’s post-trade framework with international standards.
During its inaugural year, CSE Clear successfully cleared and settled equity market transactions worth Rs. 1,188 billion through more than eight million trades, while maintaining high operational reliability and robust risk management practices.
The company also introduced a comprehensive margin framework and a Contributory Guarantee Fund to strengthen default management and enhance market stability.
CSE Clear Chairman Arjuna Herath described the completion of the company’s first year as a landmark achievement for Sri Lanka’s capital market, saying the establishment of a robust central counterparty clearing framework has laid the foundation for a more resilient and dynamic marketplace capable of supporting sustainable growth and future innovation. Congratulating the organisation on its milestone, CSE Chief Executive Officer Rajeeva Bandaranaike said the achievement represents an important step in the continued development and future expansion of Sri Lanka’s capital market.
Head of CSE Clear Dulani Warnakulasooriya said the successful transition reflected the strong support of regulators, clearing members, custodian banks and market participants.
She said the company would now focus on expanding post-trade capabilities, increasing automation, strengthening risk management and supporting new market products while further aligning its operations with global best practices and the Principles for Financial Market Infrastructures. (PFMI)
Source: Daily News