- BSE credits Central Securities Depository System, a new Automated Trading System (ATS), and connectivity to SWIFT for upgrade
The risk assessment of the Central Securities Depository Botswana (CSDB) has been upgraded by a reputable rating agency from a BBB to A- status due to implementation of new measures, the Botswana Stock Exchange (BSE) has said. The upgrade by Thomas Murray rating is effective immediately.
The BSE has attributed this new development to introduction of a new Central Securities Depository (CSD) System, which settles on central bank money, a new Automated Trading System (ATS), and the connectivity to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) that went live on 23 September 2022. “These three technology systems represent a modernisation of the BSE’s technology infrastructure that aims to improve the resilience of the market, network security and operational efficiencies and align with international best practice in order to make the BSE competitive in the global securities market,” says the bourse.
According to the BSE, the rating assesses risk exposures for investors in the post-trade capital market infrastructure as well as the effectiveness of a CSD and the processes used in post-exchange settlement and safekeeping to minimise investor risk exposures. Says the CEO of the BSE, Thapelo Tsheole, about this achievement: “The rating upgrade of the CSDB by Thomas Murray serves to reaffirm our position as the BSE in adopting an aggressive approach to attract international issuers and investors to our market.
“These new technological advancements will aid in providing added investor confidence in the market as participants will be assured of reduced settlement, safekeeping and asset servicing risks after trade execution. “We remain confident in our bid to adopt international best practice as we endeavour to transform the BSE into a world-class securities exchange by all quantifiable metrics.”
The overall risk assessment upgraded from BBB to A- with the risks evaluated being Asset Commitment Risk which maintained at A-, Liquidity Risk maintained at A-, Asset Safety Risk maintained at A+ while Asset Servicing was not rated as the CSDB is not directly involved in processing corporate actions. Financial Risk also maintained at A- while Operational Risk upgraded from BBB to A- and G&T maintained at BB.