Clearing and Settlement

The Depository has in place an automated clearing and settlement processes for primary and secondary markets transactions involving debt and equity securities. The objective of the automation is to eliminate settlement risks and delays that are associated with manual processing of securities clearing and settlement.

The standard settlement cycle for debt and equity trades are T+2 and T+3 respectively. In addition for debt trades, options for T+0 and T+1 settlement cycles are allowed. Settement is done using the DVP II model. Under the DVP II model the securities and cash are settled on gross and net basis respectively. The settlement Bank is the Central Bank.

The automation is achieved through the straight-through-processing concept. Straight-through-processing is the international standard for securities settlement in the capital market worldwide. The straight-through-processing system was achieved in 2013 through an interface between the CSD system and the Bank of Ghana RTGS system utilizing SWIFT messaging standards.