The SDSC s’ clearing and settlement process facilitates delivery versus payment of securities traded at the Somali Stock Exchange, where by an electronic debit of securities sold and credit of securities bought takes place via the SDSC system and respective funds transfers takes place via Central Bank and other Settlement Banks.
There are various internationally recognised operational models of Delivery versus Payment (DVP) of securities. The SDSC uses DVP Model 2, where by securities are settled on the CSD system on gross basis (trade for trade processing) while funds are settled on net basis through settlement banks. The SDSC uses Central Bank money to complete the settlement process.
All settlement participants (excluding Custodian Banks) are required to open a settlement account with a settlement bank. Custodian Banks participate in the settlement process as Settlement Banks. The Custodian Bank are members of the Somali Stock Exchanges
Nominated Advisers and their details can be found on our website. This facilitates funds transfer amongst settlement participants to take place on settlement date and simultaneously securities transfer on trade by trade basis on the CSD system. This ensures strict delivery versus payment.
The CSDR settles Equity trades on T+3 and Bonds trades on T+1.The Custodian Bank are members of the Somali Stock Exchanges Nominated Advosirs and their details can be found on our website. www.somalistockexchange.so/nominatedadvisors