Oct 28, 2009 (LBO) – Commercial Bank of Ceylon said it had been appointed as the second bank to settle payments for securities trades in the Colombo Stock Exchange, following a decision by the bourse to expand the number of banks offering the service. The stock exchange has an automated trading and a central depository system (CDS) to house and clear securities against payment.
Commercial Bank will accept or transfer of funds relating to trades between the CDS accounts and also with Sampath Bank, which was the first settlement bank.
“Offering brokers a choice of banks for settlement of transactions is an international best practice that will be welcomed by all those who trade in securities,” CSE chairman Nihal Fonseka said in a statement.
“This is therefore an important milestone in the evolution of the CDS settlement system.” Settlements through Commercial Bank start from this month.