SRI LANKA: CSE Announces Admission of New Trading Members to the OTC Platform

Tuesday February 15 2022

On 9^th February 2022, the Colombo Stock Exchange (CSE) announced that the process of admitting new Trading Members to the CSE under revised criteria to carry out Repurchase (REPO) transactions on debt securities on the Over The Counter (OTC) Platform of the CSE.

The new criteria is introduced as an initiative of the product expansion line-up of the CSE, projected towards establishing and further enhancing a vibrant repurchase agreement (REPO ) market for Debt Securities listed on the CSE. The new criteria will further regularize opportunities for Investors, Trading Members and other corporates involved in the fixed income securities market in Sri Lanka.

In view of this development, the CSE invites applications for new Trading Members from eligible entities to carry out REPO transactions on the debt securities on the OTC Platform implemented by CSE recently.

Commencement of trading operations will be subject to the new Trading Members obtaining a license from the Securities and Exchange Commission of Sri Lanka (SEC) as a stock dealer and a stockbroker.

Applicants admitted as Trading Members would be required to comply with the rules and other administrative and operational requirements of the CSE, the Central Depository System (Pvt) Ltd. (CDS), as well as other regulatory bodies and the Financial Intelligence Unit of the Central Bank of Sri Lanka (CBSL) that have been set up to prevent money laundering activities.

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