Monday May 11 2020

News Source: Global Exchanges

Focus: Brokers

Type: General

Country: Sri Lanka

Link: https://bit.ly/2zoAOyC




On 10th May 2020, the Colombo Stock Exchange (CSE) announced the implementation of trade cancellation and reporting of minimum capital adequacy requirements to ensure that trading operations and the related functions are carried out efficiently and effectively upon commencement of trading.

Trade Cancellations

The CSE has implemented the following procedure about trade cancellations in the event the Stockbroker Firms do not have access to the Trade Cancellation Form or facsimile facility:

The CEO, Compliance Officer or any other official of the Firm who is authorized to approve trade cancellations on behalf of the respective buying/selling Stockbroker Firm to the trade may send an email to the CSE regarding the trade cancellation.

Reporting of Minimum Capital Adequacy Requirements

In terms of Rule 5.1.2 (b) of the CSE Stockbroker Rules, a Stockbroker Firm is required to compute its Capital Adequacy Requirements for each Market Day based on the VaR Margin values provided by the CSE as per Rule 5.1.2 (a) and notify same to the CSE and SEC on a daily basis, not later than 9.00 hours on the following Market Day, in accordance with the procedure specified by the CSE and SEC for such purpose from time to time.

However, in view of the decision made by the Government that both public and private sector entities in the districts of Colombo, Gampaha, Kalutara and Puttalam should re-commence work from 11th May 2020 at 10.00 a.m., the CSE requires the Stockbroker Firms to compute its Capital Adequacy Requirements for each Market Day based on the VaR Margin values provided by the CSE and notify same to the CSE and SEC on a daily basis, not later than 11.00 a.m. on the following Market Day in accordance with the procedure specified by the CSE and SEC for such purpose.

Accordingly, Stockbroker Firms are permitted to submit their computations of Capital Adequacy Requirements for each Market Day via the Online Reporting System till 11.00 a.m. on the following Market Day until further notice.

Click on the above link for further information.