Regulatory Alerts2025-06-03
Law Governing the Central Securities Depository, Qualified Financial Contracts and Netting Agreements of 2025
The Parliament of Rwanda, sanctioned by President Paul Kagame, enacted Law No. 016/2025 to establish a comprehensive regulatory framework for Central Securities Depositories, qualified financial contracts, and netting agreements. The legislation mandates operational standards, risk management protocols, and participant obligations for CSD operators while explicitly recognizing the enforceability of derivatives, repurchase agreements, and netting clauses during financial insolvency. By replacing prior securities legislation, the law grants regulatory authorities enhanced supervisory powers to license CSDs, impose administrative sanctions, and ensure the safekeeping and settlement of both dematerialized and immobilized securities.
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