CSD launches improved securities settlement system in March

The Central Securities Depository Limited (CSD) has successfully merged the two platforms that were used to settle transactions done in debt and equity onto a common platform.

The merger makes it possible for the depository to interface with the two systems -- the Automated Trading System (ATS) of the Ghana Stock Exchange (GSE), and the Ghana Interbank Settlement System (GIS) of the Bank of Ghana (BoG).

A press statement from the CSD said the new platform will 'go-live' on Tuesday, March 8th instead of the planned date of January 4th.

Postponement of the launch date followed concerns from some stakeholders about the need for longer notice to help ensure proper integration, the statement said.

Earlier, the CSD had explained that “the Go-Live involves the migration of all depository accounts for both debt and equity onto the new platform, and interfacing the new system with the ATS of the GSE and the GIS of the BoG," the statement said.

The depository thus encourages investors to consolidate their investments with their brokers into a single account. It explained that "The new platform deploys the modern depository architecture developed by Millennium Information Technologies of the London Stock Exchange Group”.

It said upgrading the system will make it possible for the depository to maintain a single account for each investor for all asset classes, following the merger of equity and debt.

It is also in response to the need for a modern state-of-the-art platform that will meet the needs of a growing market, the statement said. "Also, there is the requirement for a platform that facilitates the introduction of more products onto the Ghana market; such as securities borrowing and lending," it said.

The statement said the new platform is a Generation 7 Product launched by MIT in 2013. It is web-based and can interface with all stakeholders by ensuring fast and secure transaction processing for registry, depository and clearing and settlement functions.

Also, the new system will provide real-time integration with trading systems and settlement banks, and be expected to help facilitate the full life-cycle of various corporate actions.

According to the release, the main driver for the upgrade is the need to install a common platform that maintains a single account for each investor for all asset classes following the merging of the GSE Depository (equity) and the Central Securities Depository (Debt) in January 2014.

"The other overriding factor is the need for a more modern state-of-the-art infrastructure that will meet the needs of a growing market. Also, there is the requirement for a platform that will facilitate the introduction of more products onto the Ghana market (such as securities borrowing and lending)," the statement added.