Experts call for efficient securities market
View(s):The efficient and robust functioning of central securities depositories is fundamental to the efficient functioning of securities markets. In fact it is the backbone of the securities market, according to a capital market expert.
Vajira Kulatilaka
“It is the backbone of the securities market,” Chairman of the Colombo Stock Exchange (CSE) and Central Depository Systems (Pvt) Ltd (CDS), Vajira Kulatilaka said recently addressing the Asia-Pacific Central Securities Depository Group (ACG) 7Cross Trainng Seminar in Colombo.
As a key pillar of the capital market services infrastructure, central depositories are providing more than a supportive role to the global financial market; depositories now use innovative forms of technology to increase efficiency minimise risk and reduce costs in order to support investors and market intermediaries and is responsible for ensuring the safety of customer assets, he added.
“Therefore strengthening the infrastructure of our markets and guaranteeing the safe and efficient operations of the system.”
Depositories and automatic trading systems are also the building blocks on which the larger and more complex market infrastructures such as clearing houses and central counterparties are built.
Mr. Kulatilaka added that despite being a forerunner in this area inthe 1990′s Sri Lanka has lagged behind in the past two decades mainly due to the unsettled conditions internally. “But now those problems are over,” he said, noting that it is indeed an ambitious plan over the next three years to transform the CDS to be a developed depository on par with other depositories in the Asian region.