news-2011-10-25

2011-10-25

CMA will provide its Real Time Gross Settlement (RTGS) and Central Securities Depository (CSD) solutions to the Central Bank of Nigeria

Stockholm, October 25th, 2011. CMA has announced today that it has been awarded a contract for the provision of the RTGS and CSD solutions to the Central Bank of Nigeria.

Central Bank of Nigeria (CBN) Payments System Vision 2020 includes implementation of an RTGS system, which is intended for large-value and time critical payments, for the inter-bank and customers’ transactions as well as meeting the needs of a modern payments system, together with an implementation of a Central Securities Depository (CSD), which is one of the pillars of global financial infrastructure. CSD is a system that holds securities accounts and enables securities to be transferred and settled by book entry according to a set of predetermined multilateral rules.

Implementing a world-class payment system infrastructure will be critical for Nigeria as it seeks to increase its influence on financial markets within West African Monetary Zone and beyond, since a modern payment system is the mechanism for settlement of all other payments, foreign exchange and securities settlement systems.

CMA of Sweden has been selected by the CBN in the result of a competitive bidding process. In addition to various requirements of the CBN, CMA’s RTS/X solution for RTGS will satisfy the Bank of International Settlement’s (BIS), Committee of Payments and Settlement System’s (CPSS) Core Principles for Systemically Important Payment Systems standards. At the same time, the scope of CMA’s DEPO/X solution for the CSD will seek to accommodate all financial instruments as may be authorized by the CBN. The financial instruments shall include but not limited to: Federal Government Bonds, Nigerian Treasury Bills, CBN bills and other financial instruments.