Clearing & Settlement


The CSDRs’ clearing and settlement process facilitates delivery versus payment of securities traded at the Dar es salaam Stock Exchange PLC, where by an electronic debit of securities sold and credit of securities bought takes place via the CSD system and respective funds transfers takes place via Central Bank and Settlement Banks.

There are various internationally recognised operational models of Delivery versus Payment (DVP) of securities. The CSDR 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 CSDR 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 / Clearing Banks. 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.

Details of settlement procedures can be found on CSDR Operational Manual, via