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By Veronica Kazimoto – MAELEZO****
Dar es Salaam****
31/08/2012.****
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THE GOVERNOR of Bank of Tanzania Prof. Benno Ndullu has launched the
enhanced Government Securities System (GSS) embedded with a book entry
system so as to increase efficiency in the Government Securities auctions
and Central Depository Operations.****
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Prof. Ndullu has said that this Government Securities System will help to
facilitate management of various risks, promote secondary market trading
and liquidity optimization in the Real Time Gross Settlement System.****
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“In quest of further development of the financial markets infrastructure,
the bank found it imperative to enhance the GSS so that it conforms to
international best practice and keeps pace with technological advancement.”
the Governor said.****
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The system includes features such as on line bidding for government
securities, electronic provision of standby facilities (Intraday and
Lombard), unique identification of auction participants and electronic
platform for repurchase agreements among others.****
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Before this system, bidding and settlement of Government securities was
done manually until in 1994 where a semi automated system known as Treasury
Bills Information System (TBIS) was introduced and settlement was done
using both cash and bankers drafts and physical certificates were being
issued as evidence of ownership.****
In 1999 the Bank introduced the Government Securities System embedded with
a book entry system wherein securities were issued in paperless form with
connectivity to the Real Time Gross Settlement System.****
END****
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