December 31, 2018
Jan 2015 to Sept 2016 – Multi-asset class CCP – Inception Phase & RFP IT Selection
Undertook a current state assessment of the trading and post-trade infrastructure for all asset classes in Sri Lanka, consulted with all Primary Dealers (Primary dealers, brokers, Government), CBSL, SEC and CSE and designed a 300+ page Inception Report (a comprehensive document covering 6 segments of analysis and solutions). Documented the detailed business requirements, undertook a legal, regulatory and tax review and proposed changes to the framework to achieve legal certainty and tax neutrality, designed the organisation structure, the financial structure, ran an RFP for technology, evaluated bids, and wrote the legal and regulatory reforms, and draft rule book for a new CCP.
On the legal and regulatory side, reviewed the current Sri Lankan capital market legislation and regulation from both CBSL and the SEC, identifying gaps and overlaps, including:
- designing securities market legal infrastructures to ensure exact legal treatment of novation, netting and finality concepts for securities settlement and collateralisation, with the aim to remove any legal barriers for efficient post trade functioning, also with the aim to comply to international standards. Significant capacity building and knowledge transfer / training achieved throughout the project
- legal reform policy document and draft legislation supporting the functioning of the SL CCP (changes to the Securities Act),
- drafting CCP Rules and Membership agreements.
The CBSL framework was identified as a much higher quality drafting standard with more content to support CCP requirements.