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OTC platform for REPO transactions of securities 

14 Sep 2021

 
  • CSE to implement the platform from Thursday 
  • Provides two options at Rs. 10,000, Rs. 100,000
  The Colombo Stock Exchange (CSE) yesterday (13) informed through a circular that it is to implement an over the counter (OTC) platform in order to facilitate the repurchase (REPO) transactions of corporate debt securities. Circular No. 06-09-2021 further informed CSE member firms and trading members that the platform would be in effect from Thursday (16) onwards with the purpose of implementing an OTC Board to improve the liquidity of the corporate debt market of the CSE by facilitating REPO transactions. The OTC platform is in fact an addition to the trading of corporate debt securities on the Applicant Tracking System (ATS). It can only be used by the market participant for REPO transactions on corporate debt securities, while REPO transactions are permitted only on the listed corporate debt securities through this OTC platform, the Circular noted. Two transaction options were considered applicable for REPO transactions carried out on the OTC platform. Accordingly, under option one, the CSE said that a total fee of Rs. 10,000 is to be paid per REPO transaction taking into account the payments of Rs. 4,500 for CSE fees, Rs. 4,500 for Central Depository Systems (CDS) fees, and Rs. 1,000 for Securities and Exchange Commission (SEC) cess. Under option two, Rs. 100,000 per month is payable and the number of transactions is unlimited. However, the options are only applicable to the existing members and the trading members of the CSE. The individuals who are licensed by the SEC to deal in debt securities and who are interested in carrying out REPO transactions on corporate debt securities on the OTC platform were urged to indicate their interest in writing to the undersigned on or before today (14). Moreover, such members are requested to provide their email, full name, designation, and contact number in relation to the operations of the OTC platform.


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