Straight Through Processing (STP) - A new initiative by the CSCS.
Category: Investors NewsBeat
Tuesday, April 12, 2011
The Nigerian Stock Exchange has recently issued a circular to all Dealing Members of the Exchange on the introduction of “Straight Through Processing” (STP), which is a new process that would ensure that the proceeds of sales of clients’ securities settle directly into the Client's designated Bank Account.
The process basically entails the following steps:
For Sales: Stockbrokers will sell securities on behalf of their clients, however, at T+3, CSCS will remit amount payable (i.e. consideration less charges) for the sales directly to the clients bank accounts while the commission on sales will be remitted to stockbrokers’ bank accounts.
Please note that the procedure for purchases remain unchanged and is not affected by the STP.
In view of the above directive, you are expected to complete and send the attached bank account update form to our office for onward delivery to the CSCS for further processing.
Investors are urged to urgently complete this form to enable the proceeds of sales to be credited to your bank account by the CSCS.
It is important to note that only hard copies of the completed bank update forms are acceptable for this process (no scanned copy please).
This new directive should be treated with urgency to facilitate a smooth execution of your subsequent sale mandates.
For further details and enquiries, contact your approved stockbroker.