Change In Debt Securities  Settlement Cycle

Adu Anane Antwi, SEC Director-General
The Securities and Exchange Commission (SEC), in consultation with the Bank of Ghana (BoG) and Ghana Stock Exchange (GSE), has announced a change in the settlement cycle for secondary market transactions in debt securities issued and traded in Ghana.

According to a statement, effective Monday, September 14, 2015, trading done on the Ghana Fixed Income Market and the CSD in Government of Ghana, Bank of Ghana and Ghana COCOBOD securities, including Treasury Bills and other Corporate Bonds will settle on a T+2 (Transaction date plus 2 business days) rolling settlement cycle for both securities and funds.

The Commission consequently amended Rule 65 of the CSD Operational Rules.

The new rule states that settlement for transactions in equities shall be on T+3 rolling cycle; settlement for transactions at the primary auction shall be on T+1 cycle and settlement for all secondary trades in debt securities shall be on T+2 rolling cycle.

'Counter-parties to a trade can however agree at the time of negotiation to settle earlier on bilateral basis, i.e. same day or T+1.

All banks, stockbrokers, custodian banks and the general public are to take note and comply appropriately,' the statement said.

A business desk report