The Central Securities Depository (CSD) has in consultation with the 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.
The change is with the approval of the Securities and Exchange Commission.
A statement by the CSD says effective Monday, September 14, 2015, “trades 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.
“Consequently, Rule 65 of the CSD Operational Rules is hereby 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.
The statement noted that 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, and urged all banks, stock brokers, custodian banks and the general public to note and comply with the change.