CSE to leapfrog to a new era with new CDS technology
The Colombo Stock Exchange (CSE) with the launch of the new state-of-the-art Rs. 150 million Central Depository System (CDS) plans to leapfrog to catch up what has been missed during the past 10-15 years, said CSE Chairman Vajira Kulatilaka at the launch ceremony held at the CSE trading floor at the World Trade Centre last Tuesday.
Mr. Kulatilaka said, “We wanted to look into the growth phase, hence we discussed with the Securities and Exchange Commission (SEC) and formed a 10 step plan to catch up what we missed during the past 10-15 years. What we are expecting is not to walk or run, but to leapfrog because we have to do a lot to catch up. Launching of the new CDS is the first step of the catch up plan.”
The CSE launched the state-of-the-art new generation depository system for its fully owned subsidiary Central Depository Systems (PVT) LTD and thereby becomes a world class organisation. In 1991 the first CDS was launched funded by USAID, also being the first in Asia and eighth in the world. The problem with that system was that it was not proprietary. Later in 1995 another system was launched by then known Computer Land and known today as Millenium IT, where the country went through very bad period from 1995, war escalated and CSE had to retire the plans, he noted.
The new CDS has introduced the GDP facility, Central Counter Party settlement systems, new products specially the derivatives. Customers can check the balance through the computer. Also the opening of CDS could be decentralised to stockbrokers, added Mr. Kulatilaka.
SEC Chairman Nalaka Godahewa speaking at the event said, “For an organisation or industry to do well, the management fundamentals are purpose, vision, strategy and commitment. Sri Lanka’s capital market has been focussing particularly on these four aspects during the last couple of years.”
Another significant event that took place last Tuesday was the inauguration of the bell ringing ceremony, from the purpose built platform on the trading floor to open the day’s trading. This tradition is followed by many stock exchanges globally. The CSE in keeping with the tradition followed by many of its peer exchanges globally will open trading with the formal bell ringing ceremony on the first day of trading for all new companies listing on the CSE and at other special events. The CSE will also make the bell ringing ceremony a regular feature by inviting special guests to perform this task.