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CSCS Appoints
FIRSTBANK Settlement Bank
First Bank of Nigeria Plc
has been appointed settlement bank to the Central Securities
Clearing System (CSCS). The CSCS provides an integrated
central depository, clearing (electronic transfer of shares
from seller to buyer) and settlement for all stock market
transactions, which are expected to be concluded within four
days.
According to the CSCS, the
appointment of FirstBank and some other banks as settlement
banks is to complement its business model as it anticipates
increased business opportunities in clearing and settlement
for stock broking, international finance transactions,
storage and retrieval of digital data, and central
depository and custodian services.
By this arrangement, stock
brokers are expected to open accounts with settlement banks
for fast and efficient transfers/exchange arising from sale
and purchase of stocks on the floor of The Nigerian Stock
Exchange.
FirstBank, by this new
status, is further positioned to actively play in the
capital market and contribute to the growth of the Nigerian
capital market, adjudged to be the fastest growing in the
African continent. The Bank has promised to provide stock
trading and margin facilities to all capital market
operators and further consolidate existing relationships.
FirstBank’s pension fund custody subsidiary, First Pension
Custodian, its First Registrars, as well as FBN Capital are
already big players in the capital market.
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