Maravi

‘SADC automated stock exchange will boost securities market’

‘SADC automated stock exchange will boost securities market’
Written by Nchima Nchito Jr
Tuesday, May 26, 2009 1:59:11 PM

LUSAKA Stock Exchange (LuSE) general manager Beatrice Nkanza has stated that the development of the automated stock exchange hub in SADC will boost the performance of the securities market.

Responding to a press query, Nkanza stated that with the completion of the technical architecture for the hub, plans had reached an advanced stage for the establishment of an automated stock exchange centre in the Southern Africa Development Community (SADC).

“The SADC hub has reached an advanced stage in that the technical architecture has been completed. This means the mode of access; reciprocity between the parties has also been discussed and should be refined as the project nears completion,” she stated.

Nkanza further stated that the co-ordination of the transactions would be included in the trading rules.

“Enforcement, in case of disputes will also be determined in the jurisdiction where the trades take place, as prescribed in the rules,” she stated. “What it means is that the new system is an ‘enabler’ as opposed to being a market per se, meaning that it will enable our local brokers to buy or sell securities in JSE [Johannesburg Stock Exchange] or Mauritius or any member who will be hooked on to this system and vice versa.”

Nkanza stated that the regional stock exchange hub would help in the integration of the various exchanges in the SADC region.

“The benefits of the hub will be the ability of local brokers to access securities in other markets which will be using the system,” she stated.

“The effect is an increase in size of the market out reach, increased liquidity and variety of products and investors. Cross listings will also become a reality.”

Nkanza however pointed out that funding was still being sought for the SADC hub project.

“The committee is looking at various sources. The launch dates keep moving as a result of numerous extenuating circumstances. Currently I believe the launch date is end of year 2009, all things being equal.” said Nkanza.

SADC member states are in the process of developing an automated stock exchange hub which will enable people and investors to buy shares from any listed companies within the region.

Labels: BEATRICE NKANZA, SADC, STOCKMARKETS

posted by MrK @ 1:02 PM