BANK OF CENTRAL AFRICAN STATES

CENTRAL SERVICES

• General Directorate of Studies, Finance and International Relations
• Directorate of Credit, Capital Markets and Banking Supervision
• Settlement and Securities Custody Unit

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GENERAL REGULATION OF THE SETTLEMENT AND SECURITIES CUSTODY UNIT (CRCT)

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The Supervisory Board,

Having regard to Regulation No. 03/08/CEMAC/UMAC/CM of 6 October 2008 on Freely Subscribed Public Securities issued by the Member States of CEMAC;

Having regard to Article 12, first paragraph, of the said Regulation, which establishes a Settlement and Securities Custody Unit at the Bank of Central African States (BEAC), located at its headquarters;

Pursuant to paragraph 3 of Article 12 of the aforementioned Regulation;

Considering the resolution dated 27 February 2009 of the Monetary Policy Committee approving the terms of this Regulation;

Considering the resolution of the BEAC Board of Directors dated 2 March 2009;

On the proposal of the Governor;

Meeting in its inaugural session on 23 December 2010, in Yaoundé, Republic of Cameroon;

Hereby adopts the General Regulation of the CRCT as follows:

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TITLE I: GENERAL PROVISIONS

Article 1: Definitions

For the purposes of this Regulation, the following terms shall be understood as follows:

Matching: validation of transactions carried out on the secondary market for Treasury securities by cross-referencing instructions issued by CRCT affiliates, according to a set of predefined rules or criteria to ensure their consistency;

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Settlement Bank: institution responsible for ensuring the cash settlement of transactions concluded on the freely subscribed public securities market. Pursuant to this Regulation, this function is performed by the Bank of Central African States (BEAC);

Discount Treasury Bills (BTA): financial instruments issued during a public borrowing operation and representing a short-term claim on the State, characterized by the possibility of issuing additional tranches of the initial borrowing, with future issuances assimilated to the existing issuance. Interest is deducted at subscription;

Settlement and Securities Custody Unit (CRCT): unit created within the Bank of Central African States (BEAC), responsible for managing the issuance account, acting as settlement agent and central securities depository for freely subscribed public securities issued by the Member States of the Economic and Monetary Community of Central Africa (CEMAC), pursuant to this Regulation;

Central Securities Depository: entity responsible for delivery versus payment settlement, custody, and administration of securities. Pursuant to this Regulation, this function is performed by the Settlement and Securities Custody Unit (CRCT);

Issuance: creation and circulation of freely subscribed public securities;

Credit Institution: body that habitually, in any form whatsoever, carries out banking operations as defined in Article 4 of the Annex to the Convention of 17 January 1992 on the harmonization of Banking Regulation in the States of Central Africa;

Member State: any State party to the Treaty establishing the Economic and Monetary Community of Central Africa;

Governor: Governor of the Bank of Central African States;

Money Market: Central Bank money market organized by Decisions of the BEAC Board of Directors dated 28 July and 29 November 1993;

Discount Treasury Bonds (OTA): negotiable securities issued during a public borrowing operation and representing a medium or long-term claim on the State, characterized by the possibility of issuing additional tranches of the initial borrowing, with future issuances assimilated to the existing issuance. Interest is payable annually;

Treasury Securities Specialist (TSS): credit institution authorized by the issuing State to monitor and stimulate the market for freely subscribed public securities, particularly by participating in related auctions organized by the BEAC;

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**Account Keeper