- The GFIM Trading Rules shall apply to secondary market transactions in fixed income securities or instruments that are listed on the Ghana Fixed Income Market (GFIM).
- Any reference to these Rules shall include a reference to any guidelines published or prescribed under these Rules by the GFIM from time to time.
- Secondary transactions in securities listed on the GFIM shall be done remotely from the offices of the GFIM Dealing Members Dealers using the platform that the GFIM may from time to time approve.
- The workstations or terminals on the Trading Floor of the GFIM, where feasible, may also be used by a GFIM registered traders.
- GFIM Dealing Members shall be responsible for the installation and subscriptions of the Trading platform they use
- It is mandatory for dealers to report all their trades via the trading infrastructure in place.
GFIM transactions shall be for cash on settlement dates. Other types of transactions may be
allowed from time to time.
- Trading hours for the GFIM shall be from 0900 hours GMT to 1600 hours GMT each business day or as may be determined by the GFIM in a press release.
- Orders will be mass-suspended at 1600 hours GMT
- There shall be no dealing outside trading hours
- Where circumstances on particular trading day(s) prevent the adherence to the set trading hours, the GFIM may vary the trading hours for the trading day(s) concerned.
- Transactions in securities listed on the GFIM may be through one of the following:
- request for quotes method; or
- an anonymous or firm order placed in the system; or
- voice trade report.
- Request for quotes shall be in standard amounts or multiples of the standard amount and the standard amount may be determined by GFIM from time to time.
- Firm orders placed in GFIM trading system shall be for any amount other than the standard but shall be in multiples of ten Ghana cedis (GH¢10).
- Quotes or firm orders for notes and bonds shall be on the basis of yield but shall also display the clean price.
- Quotes or firm orders for money market securities shall be on the basis of the discount.
- Securities will be benchmarked from time to time by GFIM
- A PD shall provide a two-way quote for all agreed benchmarked securities.
- All other GFIM Dealing Members are not obliged but may provide indicative quotes for GFIM agreed benchmarked securities.
- Standard Amount in Benchmarked Securities
- The standard amount for quotes by GFIM Dealing Members for dealer to dealer transactions in agreed benchmarked securities shall be GH¢500,000 or as may be determined from time to time.
- The standard amount for all other quotes in agreed benchmarked securities shall be GH¢50,000 or as may be determined by the GFIM from time to time.
- Specified Amount in Benchmarked Securities
- Where a calling GFIM Dealing Member‟s registered trader requests a quote for an amount larger than the standard amount, in a benchmarked security, the calling party shall state the exact amount up-front.
- The quoting dealer may decline to quote for such an exact amount and shall specify the amount it is willing quote which amount must be the standard amount or higher.
- Non-Benchmarked SecuritiesA dealer is not obliged to provide a two-way quote in securities that have not been benchmarked by GFIM.
- The maximum spread for all securities listed on GFIM shall be 50 basis points.
- GFIM may vary the maximum spread from time to time
- Dealing shall be done through:
- the on-line screen-based dealing system approved by the GFIM; or
- by voice.
- For trades agreed over the phone to be confirmed, a voice trade report ticket shall be entered to validate the trade.
- The validated trades in 10(2) shall be reported to the GFIM.
- Quotes shall be given using the RFQ trading module and/or by telephone.
- Quotes provided over the phone are valid for that specific phone call.
- Quotes given are valid for a maximum of 60 seconds for on-screen transactions on twoway quote basis
- Off-screen transactions must be consummated in the system within 10 minutes of execution.
- For a RFQ using the Trading System,
- a GFIM Dealing Member must provide quotes when asked within 60 seconds and there must be at least 75% response; and
- a GFIM Dealing Member dealer receiving a quote is required to act on the quote within 30 seconds.
- The maximum number of dealers a dealer can request a quote from at any given time in the Trading System shall be 5 (five).
- When using the anonymous firm order panel (window), quotes shall be valid until changed.
- The amount and/or price of a quote are valid until changed.
- A quote cannot be changed after it has been accepted.
- The GFIM may impose a trading halt in a listed security or suspend trading in a listed security where:
- it believes that a trader or some traders have access to unpublished price- sensitive information;
- trading is being influenced by manipulative or deceptive trading practice;
- there is unusual movement in price or volume of the security;
- the market for the security becomes illiquid
- there is the need to obtain clarification from the issuer on any matter affecting the price of the security or related securities; and
- in the view of the GFIM circumstances will prevent transparent, fair and orderly trading in a security.
- An unusual price movement may be determined by the GFIM by reference to the tracking of prices for the security or that class of securities over a period. Until otherwise determined, a price movement beyond of +3.5% or -3.5% per day shall be regarded as unusual.
- A trading halt or suspension may be imposed for a period during a trading day or the halt may extend beyond one day but only with the permission of the GFIM and by a press release.
- Trading in a security shall resume as soon as the circumstances that led to the halt or suspension are addressed.
- GFIM Dealing Members shall not effect transactions in a security for which a trading halt or suspension is in place and the GFIM shall take steps to prevent or nullify such transactions.
- Quotes for notes and bonds shall be on the basis of yield but shall also display the clean price.
- All quotes as price shall be provided to 4 (four) decimal places
- A GFIM Dealing Member shall not refuse to deal after quoting a price if the requesting
dealer decides to buy or sell at the price quoted.
- A GFIM Dealing Member is bound to deal once the price and quantity is agreed.
- A deal is consummated when the GFIM Dealing Member that requested a quote confirms
the buying or selling of a standard amount or specified amount quoted at the price
indicated by the quoting dealer.
- GFIM Dealing Members are required to re-confirm transactions details i.e. price and
- Where no amount is indicated when a quote is given, the quote shall be assumed to be
for the standard amount.
- Where a GFIM Dealing Member requests a quote for an amount higher than the standard
amount and the amount is indicated ahead of the quoting member giving the quote, the
quote shall be assumed to be for the amount indicated and the quoting member is
obliged to deal.
- GFIM Dealing Members are required to keep accurate records of dealings with clients or
counterpart dealing members.
- The records may be by email, fax, signed letters, agreements, and voice recordings or as
the dealer may determine from time to time.
- It is mandatory that all voice transactions are recorded.
- Such records must be kept by the dealer for a period of 7 years. Voice records shall be
kept for 2 months.
- Trade confirmation tickets in the Trade Blotter shall serve as confirmation of trades.
- A GFIM Dealing Member can view all historic trades and these can be fed into backoffice systems for processing or validation.
- Written confirmation or SWIFT may also be regarded as evidence of the deal but shall
not change or override terms agreed verbally.
- Confirmation shall be provided within 24 hours of the deal.
- On receipt of trade confirmation, a GFIM Dealing Member must accurately check and
take appropriate action such that if incorrect, an amended confirmation shall be required
from the dealer whose original confirmation was incorrect.
- Where no confirmation is received, a dealer must ask the counterparty dealer soonest.
- A GFIM Dealing Member shall perform to the minimum standards required of them
- A GFIM Dealing Member must respond to request for quotes at least 75% of the time.
- The GFIM will evaluate the secondary trading activities of dealing members periodically.
- The GFIM shall provide report of such evaluation of secondary activities of PD dealers to
the Bank of Ghana.
- The GFIM shall provide report of such evaluation of secondary activities of all dealers to
the Securities and Exchange Commission.