Banking Circular No 1 of 2009 - Confirmation of secondary trading transactions for government securities

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1.:" >,L-~ \ "G~- .: .~ -., ""..~ 'T#' J""'" ;... ~'j {t-- . . <!'-. ~'K1J~ ~KF.K'i.!:.i CENTRAL BANK OF KENYA BANKI KUUYA KENYA Haile Selas~ie Avenue P. O. Box 60000 - 00200 Nairobi Kenya Telephone: 2860000 Telex: 22324 BANKINGCIRCULARNo. I OF 2009 TO: ALLCHIEFEXECUTIVESOFCOMMERQAlBANKS CONFIRMATIONOFSECONDARYTRADINGTRANSAalONSFORGOVERNMENT SECURITIESBY COMMEROALBANK, BANKSNOMINEES,CLIENTSAND CUSTODIAL CDSACCOUNTS It will be recalled that clause (v) of the circular dated May I5, 2003 on trading requirements for treasury bonds & bills, sent to all Chief Executives, of banks, parastatals, licensed brokers, pension and fund managers, insurance companies and other companies required that all inter-bank secondary trading transactions in Government securities be submitted through Open Market Operations (OMO) and duly confirmed on the Reutersdealing system. Further to this circular, we wish to notify' all banks that all confirmations of secondary trading transactions shall henceforth be confirmed by submitting to CBK SWIFTmessagetype MT599 (FreeFormatMessage)as per the attached sample message. Consequently, at the point o( fillingout the physical forms, counterparty banks will be required to submit the said SWIFTmessage to CBKfor all transactions (or their own account and/or CDS accounts for nominee/clients/ custodial operated by themselves providing full details as required in the template. It is hoped that the new procedures will go along way in enhancing efficiency and safety in these transactions as we endeavor to fully automate all aspects of transactions in Government securities.

For queries and/or clarifications on this development, please contact the Director, Monetary Operations and Debt Management Department.

~ ~. JACKSON~. Kn;u~~ DIRECTOR,MONETARYOPERATIONSi DEBTMANAGEMENT IA~II APV10 "'''''0