• SRI CSE launched CSE Clear (Pvt) Limited (CCP) as fully-owned subsidiary to operate as central counterparty for equity transactions, licensed as clearing house by SRI SEC.
• Follows SRI CSE April 2025 revised the CDS — Central depository rules.

Outline of New Framework

• New CCP framework replaces current bilateral delivery versus payment settlement mechanism operational since August 2021, addressing operational complexity and increased credit and settlement risks from growing trading volumes.
• CCP will guarantee all trades between parties, eliminating counterparty default risk and providing netting capabilities to reduce settlement volumes, with robust risk management frameworks and default funds protecting the system.
• Implementation enables SRI CSE to introduce new products including derivatives (futures and options), complex instruments, and advanced trading strategies such as short selling in Sri Lankan capital markets.
• Framework aligns with international standards to attract foreign investment and supports higher trading volumes with enhanced market confidence through guaranteed settlement processes.