GSE set to establish Ghana Fixed Income Market

•    The trading platform at the GSE.

• The trading platform at the GSE.

Ghana Stock Exchange says it is taking steps to ensure that its new Ghana Fixed Income Market (GFIM) takes off in June this year.

A number of key stakeholders in Ghana’s financial market have collaborated to set up the Ghana Fixed Income Market (GFIM).

The stakeholders include the Bank of Ghana, the Ghana Stock Exchange, the Central Securities Depository Ghana Ltd (CSD), the Ghana Association of Bankers (GAB), ACI Ghana (Association of Bank Dealers) and Licensed Dealing Members (LDMs) of the Ghana Stock Exchange.

Speaking at a press briefing in Accra on Wednesday, Mr. Ekow Afedzie, Deputy managing director of the GSE said the objective of the GFIM was to provide a fair, orderly, transparent and efficient market for all fixed income and similar securities as well as bring secondary trading activities in fixed income securities in Ghana to international best practice standards.

He said the principal functions of GFIM would be to approve the admission of all fixed income securities including government and corporate and other similar securities and to provide a market for the secondary trading of such securities.

He said all government of Ghana treasury bills, notes and bonds and Bank of Ghana money market instruments were to be admitted and traded on the GFIM.

“In addition, quasi-Government of Ghana institutions’ money market instruments, notes and bonds; corporate notes and bonds; municipal and/or metropolitan bonds; supra-national bonds; repos; and other fixed income or money market securities may be admitted and traded on the GFIM,” he said.

Mr. Afedzie explained that trading on the GFIM shall be limited to an entity that was licensed by the Securities and Exchange Commission to deal in securities.

This he said would be in addition to being authorised by the Bank of Ghana as a primary dealer (PD); or licensed by the Bank of Ghana as a bank; or licensed by the Ghana Stock Exchange as an LDM.

“The Bank of Ghana, for monetary policy purposes, shall be permitted to deal in Government of Ghana and Bank of Ghana securities listed on the GFIM,” he said.

He said secondary trading of securities on the GFIM would be by way of an electronic trading and market surveillance system provided by Bloomberg L. P and cash settlement of trades would be done through the Bank of Ghana while securities settlement would be done at the CSD.

The GFIM, he said, would be governed by an 11-member governing committee to be chaired by the first deputy governor of the Bank of Ghana.

“There will be representatives from GSE, CSD, GAB, ACI Ghana, the Ghana Securities Industry Association and the Bank of Ghana and the Debt Management Division of the Ministry of Finance on the committee,” he said.

By David Adadevoh

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