Another step towards the emergence of an altogether more robust and transparent capital market was taken on Wednesday when the Libyan . . .[restrict]Stock Exchange struck a deal to have outside clearing and custody of its trades.
The exchange’s general manager, Ahmed Karoud signed an agreement with the Libyan Trade and Development Bank (LTDB) to clear trades and conduct settlements. Despite its own equipment, including a dusty IBM server in their Benghazi premises, it seems that the management of the Libyan Exchange has decided, certainly for the time being, to outsource its back office.
On the face of it, the deal will also give the LTDB a chance to develop its own brokerage and marketing through its branch network. This could however, put at a commercial disadvantage other financial institutions such as Sahara bank, which are themselves quoted on the exchange. No one at the Stock Exchange could be contacted last night. [/restrict]