Maravi

LuSE to integrate trading sessions into national payment systems

COMMENT - I disagree with mrs. Nkunda. People didn't just 'get ahead of themselves' and created hundreds of trillions of dollars in toxic assets - several times global GDP (which I think is 60 trillion dollars). This is about the disastrous effects of neoliberal policies - deregulation, privatisation and corporate free trade. This happened in the 1920s, 1980s, and now it happened again. Neoliberalism has failed again, and we're lucky if the global economy makes it through this time. There is no need to try again.


LuSE to integrate trading sessions into national payment systems
Written by Kabanda Chulu
Friday, May 29, 2009 4:28:41 PM

TRADING sessions at the Lusaka Stock Exchange (LuSE) will this year be integrated into the national payment systems in order to enhance integrity of the capital markets by separating securities from payment systems.

In an interview in Lusaka, LuSE general manager Beatrice Nkanza said there was need to start transacting the way foreign investors did in their own environments when conducting business at the capital markets.

“Things have really been shaken including capital markets and LuSE is affected since we are part of the global network and we have people who are investing in those markets and they are doing that in the so called emerging markets including ours but we will be impacted by the changes going out there like banks, companies going under, markets are affected hence there will be regulatory changes that will impact even on those of us who have been compliant and what those changes will be remains to be seen,” Nkanza said.

“There is nothing wrong with the systems out there but people just got ahead of themselves and ignore rules hence getting into problems so restructuring will enhance and compel players to abide by the rules which we have been doing here and soon the central depository bill will be enacted and what it does is to separate payment and settlement systems thereby enhancing the integrity of markets by separating securities from payment systems. Right now we have just met the Bank of Zambia so that LuSE can be integrated into national payment system so when foreign investors come to do business, they will find that the things they do there we will be doing it here.”

She expressed optimism that confidence would soon return to the capital markets.

“Capital markets are run on confidence. Right now confidence is short because of what is happening everywhere not only at LuSE but throughout the world, as a result people have lost value - companies like General Motors (GM) have gone into turbulent difficult waters, did you ever wonder that GM, one of the biggest companies in the world, can go under, did you ever?” asked Nkanza.

“We want confidence to come back and it should come back since western governments are pumping a lot of money to resuscitate companies and financial systems and stimulate people to start doing business again. Hopefully things will soon return to normal and we hope to strengthen our systems so that we fit in smartly with what is happening globally so that when these funds start moving, they can find way to LuSE and people can get returns and profits like they expect.”

Labels: BEATRICE NKANZA, LUSE, PAYMENT SYSTEMS

posted by MrK @ 3:32 PM