By Taofik Salako, Deputy Group Business Editor
Major African securities exchanges at the weekend signed agreement to procure an order-routing system that will enable investors to trade across the continent, opening up thousands of Africa-listed equities, bonds and derivatives for trading.
Under the auspices of African Securities Exchanges Association (ASEA) and African Development Bank (AfDB), major stakeholders in the African securities markets agreed to set up order-routing technology platform for routing orders and trade confirmations between stockbrokers across Africa’s major exchanges.
The cross-border trading project, known as African Exchanges Linkage Project (AELP), included major African exchanges including Nigerian Exchange (NGX), Casablanca Stock Exchange, The Egyptian Exchange, Johannesburg Stock Exchange, Nairobi Securities Exchange, Stock Exchange of Mauritius and Bourse Régionale des Valeurs Mobilières (BRVM), the stock exchange for eight African countries under the West African Economic and Monetary Union.
With the AELP Link, investor orders in one market will be channelled by a domestic stockbroker to a stockbroker on the foreign market where the security is listed, to enter into that market for execution in the foreign market. Africa-listed securities to be accessed through the AELP Link include all securities that are available for cross-border investors.
The platform will enable investors to trade on Africa’s most promising and profitable businesses and global leaders as well as corporate and government bonds, Exchange Traded Funds (ETFs) and derivatives; where these are listed on the participating exchanges and the sponsoring stockbroker provides access.
The AELP Link is expected to boost pan-African investment flows and bring more liquidity to African markets.
President, African Securities Exchanges Association (ASEA), Dr Felix Amenounvé said the award of the contract for the order-routing system was a big step towards free movement of investments across Africa and free flow of capital.
He said the aim of the project is to open new opportunities for individual and institutional investors to invest productively into Africa’s growth story.
“The Exchanges continue to support African enterprises and governments to raise long-term capital for African jobs, business growth, infrastructure and development,” Amenounvé , who is also the Chief Executive Officer of the BRVM said.
Chief Executive Officer, Nigerian Exchange (NGX) Limited, Mr. Temi Popoola, said NGX was optimistic the milestone contract would further hasten efforts at capital market integration across Africa.“The work of the AELP is significant, as it will serve to ultimately boost Pan-African investment flows, promote innovations that support the diversification needs of investors in Africa, and help address the […]
