What are negotiable government stocks and securities?

Negotiable government stocks and securities are loan notes or debt instruments held against, or guaranteed by, the State. Negotiable government stocks and securities are issued by the State of Cameroon.

• ‘Coupon zero' Treasury Bonds issued in favour of the States creditors. They are long-term securities over a period of 2 and 12 years which are remunerated at a capitalized interest rate of 3%, which is repaid along with the capital at the maturity date;
  
• Ordinary treasury bonds are defined as loan notes or debt instruments issued by the State to credit establishments and insurance companies: they have duration of 12 years and are repaid at a rate of interest which cannot be above the market rate. These interest payments are paid quarterly;
  
• Treasury Bonds, which are issued to economic agents.

The role of the Douala Stock Exchange in the negotiation of government stocks and securities

Douala Stock Exchange is responsible for the organization and monitoring of the secondary market in treasury bonds, which are quoted in the unlisted securities division. In this capacity, the DSX assures the prerogatives of the following:

• Organisation of the market : characterised by the centralisation of negotiation of these securities in their « Over The Counter » division.

The scope of these arrangements concerns every person wishing to carry out a negotiation of Zero Coupon Treasury Bonds at the Douala Stock Exchange, whether sale or purchase, both on his or her own account or on behalf of a third party (mandate permitting).

• The negotiation of transactions : The negotiating procedures used is a system known as A ‘Dutch auction'. Adjudications of zero coupon treasury bonds are carried out by means of a call for bids published in the official Bulletin of the DSX et displayed within its premises.

Each adjudication puts into competition all those who wish to purchase or sell bonds and who make an offer which conforms to laws and regulations in force. Potential buyers or sellers must confirm their transaction at the DOUALA STOCK EXCHANGE.

Each bidder whose offer is accepted will buy or sell the securities at the bid price (expressed as a nominal percentage of the face value of the securities) At the date of adjudication, the orders will be awarded at the price proposed by the adjudicators: the most attractive bids will be those whose price is highest, at nominal percentage value.

In the interests of transparency, the results of the adjudication will be published in the official Bulletin of the Douala Stock Exchange. The following information will be communicated: the quantity bought or sold the transfer price, and the names of the persons or organizations buying or selling.

The Douala Stock Exchange shall monitor all transactions carried out by authorized dealers, whether they be acting on their own account or on behalf of others.