CDSC Admitted to Capital Markets’ Regulatory Sandbox 

Capital Markets Authority Eases Compliance Requirements

CMA acting chief executive Wyckliffe Shamiah

The Central Depository and Settlement Corporation (CDSC) has become the fourth company to be admitted into the Capital Markets Authority’s Regulatory Sandbox.

This will enable CDSC to test its proposed screen-based Securities Lending and Borrowing (SLB) platform.

CDSC will have a 12-month period to deploy and conduct live-tests of their innovative products, solutions, and services.

CMA acting chief executive officer Wyckliffe Shamiah said the test of the screen-based model will ensure that any investor can carry out an SLB transaction through approved Central Depository Agents.

“If the test is successful, the current Securities Lending and Borrowing Regulations will be amended to include the screen-based model and address other issues which have hampered the uptake of the bilateral SLB product,” he said

Other firms that have been admitted include Innova Ltd and Pezesha Africa Ltd.

Innova is testing its cloud-based data analytics platform, while Pezesha is testing an internet-based crowd-funding platform through which investors can provide loan facilities to small and medium enterprises.

“The Regulatory Sandbox allows live testing of innovations under a less onerous regulatory regime and is expected to attract fintech companies and existing capital markets licensees to test the application of technology to financial services,” Shamiah said.

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