The Dépositaire Central/Banque de Règlement (DC/BR) and the Central Securities Depository (CSD) Ghana Ltd. have announced the signing of a Memorandum of Understanding (MoU) to foster a continuing relationship for the respective benefit of the financial services industry in the Republic of Ghana and West African Economic and Monetary Union (WAEMU) Countries.
The announcement was made at a signing ceremony led by DC/BR CEO, Birahim Diouf, and CSD Ghana Ltd. CEO, Michael Mensah, on Friday, December 9, 2022.
The MoU further establishes common grounds for the two depositories to launch joint initiatives in their respective markets.
As part of the agreement, DC/BR and CSD Ghana Ltd. have committed to holding regular meetings between senior management to enhance the understanding of both organizations. The MoU also provides a platform for sharing of central depositories’ best practices on business developments, operating models, and related improvement opportunities.
Other areas to promote and encourage opportunities for cooperation and integration include: post-trade activities and services, particularly in the context of the West Africa Capital Market Integration project; joint research papers and knowledge products on topics relevant to securities depository operations; staff secondment and training for deepening understanding of the respective securities markets; and joint convening on topics of mutual interest.
Commenting on the MoU, DC/BR CEO, Birahim Diouf, said the agreement will benefit all stakeholders of the two institutions.
“The MoU with the Central Securities Depository of Ghana creates avenues to exchange information on matters of mutual interest. I am convinced that the agreement will not only benefit our institutions but also our clients and respective markets. I am delighted and excited about the road ahead and what we can achieve together.”
Birahim Diouf
Consolidation of a true partnership
On his part, Michael Mensah, the CEO of the Central Securities Depository (GH) LTD, stated that the MoU with DC/BR marks the consolidation of a true partnership.
“The timing of the execution of this MoU is right, and there is no doubt that the future is bright for the two institutions. This collaboration forged between the two institutions will highly facilitate the WACMIC integration. We look forward to the successful implementation of this MoU for the mutual benefit of both parties.”
Michael Mensah
The Dépositaire Central/Banque de Règlement (CD/BR) is the central depository of securities in the West African Economic and Monetary Union Countries (WAEMU) Regional Financial Market. It ensures the custody of securities for its members, the completion of the settlement/delivery operations following the stock exchange transactions as well as the payment of corporate actions.
CD/BR manages the settlement guaranty fund of the market. As a full member of the Association of National Numbering Agency (ANNA), it ensures the issuance of the ISIN codes for securities in the WAEMU. The DC/BR complies with the international standards of central depositories.
On the other hand, its partner, The Central Securities Depository (CSD) Ghana LTD, is a Financial Market Infrastructure established to provide depository, clearing, and settlement services in Ghana’s Financial Markets.
The CSD is responsible for the custody/safekeeping of both debt and equity securities. It is regulated by the Securities and Exchange Commission of Ghana and its operations are also guided by the Principles of Financial Market Infrastructures (FMIs) developed by the International Organization of Securities Commissions (IOSCO) and the Bank of International Settlement.
