Auction · Settlement & Allocation

Settlement & Allocation

After you submit a bid, the auction decides whether it's successful and how much you're awarded — then settlement completes the investment on your behalf.

4 min readBeginner guideAuction guide

After you submit a Treasury Bill bid through your intermediary, the auction process determines whether your bid is successful and how much you are awarded.

In Ethiopia, investors typically transfer funds to their brokerage account before bidding. Your intermediary then submits the bid and handles the settlement process on your behalf.

What is allocation?

Allocation is the amount of Treasury Bills awarded to you after the auction. Depending on the result, you may receive:

Full allocation

You receive the full amount you requested.

Partial allocation

You receive part of the amount you requested.

No allocation

Your bid isn't accepted; funds stay in your account.

Allocation depends on auction demand, your bid price or yield, and the final auction outcome.

How the process usually works

You've already funded your account and submitted your bid — those first steps are recapped here, followed by what happens next.

  1. Fund your brokerage accountAlready done

    Before bidding, you usually transfer your intended investment amount to your brokerage account. This lets your intermediary submit your bid and process the investment if it's successful.

  2. Submit your bid through your intermediaryAlready done

    Your intermediary submits your bid based on your instructions. Your bid may include:

    The tenor you want
    The amount you want to invest
    Your bid price or yield
    Any applicable fees
  3. Auction results are announced

    After the auction closes, the results are disclosed to participants — showing which bids were accepted and the final prices, yields, and allocation outcomes.

  4. Allocation is processed

    If your bid is successful, your intermediary processes the allocated Treasury Bill investment. Your ownership is recorded through the market's securities infrastructure.

  5. Unused funds remain in your account

    If your bid is unsuccessful or only partially allocated, the unused funds usually remain in your brokerage account. You can keep them for a future auction or request withdrawal, depending on your intermediary's process.

What is settlement?

Settlement is the process of completing the Treasury Bill transaction after a successful auction. It includes:

Confirming allocation
Processing payment
Recording ownership

For most investors, settlement is handled through your intermediary and the market infrastructure systems.

Important things to know

Allocation is not guaranteed

Submitting a bid doesn't mean you'll automatically receive Treasury Bills — your bid must be accepted through the auction process.

You may receive a partial allocation

In some cases, you may receive only part of the amount you requested.

Funds are usually committed before bidding

Because funds are placed in your account before bidding, make sure you're comfortable with the amount you're setting aside.

Unused funds stay in your account

If your bid isn't successful, your money returns to your account — usually kept there unless you withdraw it or use it for another auction.

Settled and allocated? Here's the final stage.
Selling Before Maturity
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