Discount Houses first started operating in their specialist role on 16th July 1810 when William Alexander opened for business as a Bill Broker in the City of London, styled as Alexanders & Co. Since that time many discount houses have been established in other countries, including South Africa and Malaysia and they have proved invaluable to the development of vibrant money markets in those countries. Securities Discount Company Limited (SDC) was the second discount house to be licensed by the Bank of Ghana in 1991.The prime function of SDC, as a discount house, is to provide an outlet for the otherwise idle funds within the banking system and other participants in the Ghana money market and to provide liquidity in the short-term money market through the development of an active secondary market in money market instruments.
SDC deals directly, as a principal, with banks, commercial and industrial corporations, insurance companies and insurance brokers, building societies, investment trusts and pension funds, educational institutions and governmental institutions as well as being part of the mechanism through which the Bank of Ghana controls the daily ebb and flow of money in the Market.
Through effective and efficient trading and settlement, SDC aims to provide a quality outlet for the placement of the market's liquid funds. The Company is committed to evolving a business approach that is client-focused and market-driven rather than purely transaction-oriented.
SDC is therefore guided by a set of corporate values that are directed towards building long-term relationships, market respect and high ethical standards.SDC"s most valuable assets are its staff to whom it has entrusted the realisation of the Company’s vision of quality and high professional standards. A significant proportion of the Company’s resources is therefore committed to always ensuring that its staff are equipped with the finest skills in discount house operation by any international yardstick. In particular, its dealing team comprises professionals with exceptional individual competence cutting across various disciplines to provide a resourceful blend of team strength and perspective.
SDC’s activities in the money market mainly involve the purchase and sale of various negotiable cedi denominated instruments as well as the secondary market trading in these instruments.
In addition to its traditional role, SDC also provides advice to players in the market on the leverage of debt through the issue of Commercial Paper or Bankers Acceptances.
As a Discount House, SDC is obliged to report on a daily basis that its trading positions are in compliance with the regulatory controls laid down by the Bank of Ghana for prudential operations. Within those controls, SDC will ensure that its clients’ liquidity needs are always met in a cost-effective manner and that it is always in total compliance of Bank of Ghana regulations regarding borrowing, reporting requirements and liquidity reserve requirements. SDC was also the first discount house in Ghana to reach the ¢10 billion mark in capital imposed by the Bank of Ghana.
SDC is resolved to build a vibrant and well-traded secondary market in short-term financial instruments and stands ready to buy or sell Treasury Bills at any time.