One of the functions of the Central Securities Clearing System is certificate dematerialization but most investors are not aware of the operations of the CSCS nor of the facility as they prefer to keep the paper certificate. From January 1, 2009, investors shares were being lodged directly online with the CSCS. Prior to this new directive, the following problems were observed before the introduction of CSCS:-

With the introduction of the CSCS automation of the operations of activities on the Nigerian Capital Market also took place with IT innovation. Before now, there was a problem of:-

1.3       OBJECTIVES OF THE STUDY
The research study is undertaken with a view of achieving the following objective. Which are:-

For a better formulation of hypotheses, he following research questions was drawn:

In pursuance of this study, three null hypotheses and their alternative will be set out
Hypothesis one
H0: CSCS have negative effect on the Nigerian Capital Market 
H1: CSCS have positive effect on the Nigerian Capital Market
Hypothesis two
H0: CSCS have negative effect on investors’ confidence in the trading activities on the Nigerian Capital Market 
H1: CSCS have positive effect on investors’ confidence in the trading activities on the Nigerian Capital Market 
Hypothesis three
H0: CSCS share certificate dematerializations have negative effect on the performance of trading activities on the Nigeria capital market
H1: CSCS share certificate dematerializations have positive effect on the performance of trading activities on the Nigeria capital market

The scope of the study shall cover the clearing and settlement system in the Nigerian stock exchange Onitsha, the activities of the Central Securities Clearing System, its establishment, benefits and problems from inception. It shall also cover how the Central Securities Clearing System can improve the transactions in the Nigerian Capital Market. The place of the study is Asaba Metropolis and it involves seventeen years (21) of assessment. Secondary data will be used; facts figures and other relevant statistic shall be obtained from the Nigerian Stock Exchange Onitsha, Newspapers Journals, electronic media, fact book and related books.

The significance of the study is towards creating a positive awareness amongst investors, stockbrokers and capital market operators about the operations of the Central Securities Clearing System and its effect on the performance of trading activities on the performance of trading activities on the Nigerian Capital Market.

 It will result to more prompt and accurate clearing settlement, delivery and custodian system in the Nigerian Stock Exchange brings about the efficient service delivery of stockbrokers and investors confidence in the Central Securities Clearing System operations. Also it will bring about increase in knowledge to the academic society, it will enable further researcher to acquire more knowledge and research of its.