CSD announces settlement cycle change

The Central Securities Depository (CSD) has in consultation with Bank of Ghana and the Ghana Stock Exchange announced a change in the settlement cycle for secondary market transactions in debt securities issued and traded in Ghana.

Effective Monday, September 14, 2015, trades done on the Ghana Fixed Income Market and the CSD in 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.

A statement from the CSD said the move follows the approval granted by the Securities and Exchange Commission.

In this direction, it said the CSD Operational Rules had been amended as follows: 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, the statement added.