PRESS RELEASE                                                                      PR.No. 002/2015                                         

                      CHANGE IN SETTLEMENT CYCLE FOR DEBT SECURITIES

Following the approval granted by the Securities and Exchange Commission in their letter dated 27th August, 2015, the CSD in consultation with Bank of Ghana and the Ghana Stock Exchange announces 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 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:

(i) Settlement for transactions in equities shall be on T+3 rolling cycle;

(ii) Settlement for transactions at the primary auction shall be on T+1 cycle; and

(iii) 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, stock brokers, custodian banks and the general public are to take note and comply appropriately.

                                                                                                     -E N D –

att'd.

Distribution

1.       All Banks

2.       All LDMs

3.       All Custodian Banks

4.       The Secretary, Bank of Ghana

5.       Securities & Exchange Commission

6.       Ghana Stock Exchange

7.       General Public

For enquiries, contact:

Head of Operations, CSD on 0302 68 93 13/4