Trading at BSE gets automated
COMPUTING| Aug. 28, 2012, 9:48 a.m.
By John Churu, Gaborone, Botswana
The Botswana Stock Exchange recently joined other exchanges in the continent when it shifted from the manual trading system to a modern platform that will improve efficiency in buying and selling securities. The move will also see the BSE moving in the same wavelength as other modernised exchanges elsewhere in the world.
The new electronic trading system, or the Automated Trading System, replaces the floor system method and it is expected to make the BSE more visible and will create efficiencies in the methods of trading.
The stock exchange earlier reported in its annual report for 2011 that “the ATS is a major development for the local bourse and compliments the already established CSD, which will propel the BSE into the future.”
Accordingly, the Central Securities Depository was implemented in 2008 and since its introduction the systematic risk of investing in share market decreased. “The ATS will make us more visible and help create efficiencies in the trading methodology, which we expect will enhance liquidity.”
A letter to market participants, explained that the new trading platform will offer the market an up-to-date and more efficient trading platform. The Bourse has also upgraded the Central Securities Depository System ICSDJ to enable the two systems, ATS and CSD, to be integrated.
During this period of transition from manual trading system to the ATS, the BSE had declared last Thursday a trading holiday and Friday a settlement holiday, respectively. “The holidays were declared to allow for all the necessary systems to be put in place for 'go live'”
As a result of this transition, trades that should have settled on the 24 August 2012 will now settle on the 27 August 2072. After which, settlement of trades will continue as normal.
However, the exchange observed that in order for the CSD to reach its potential, there is a need to engage investors and motivate them to dematerialise their shares. “A central depository system can only reach its full potential in a 100 percent dematerialised environment.”
MORE COMPUTING NEWS
Achieving full visibility in a cloudy hybrid environmentA growing number of organisations are migrating applications and information stores to public and private cloud solutions, so that hybrid IT architectures have become the norm. Read More
Make way for VAS: The era of VM-aware storageAlong with DAS, SAN and NAS, storage now has another term, VM-aware storage (VAS). Read More
Trisat showcases online platform for schools managementSoftware development company Trisat Communications Limited has launched an online platform, nortify.com.ng, to provide digital tools to simplify school management. Read More
Transforming and maximising existing fibre networksMaximising existing optical fibre infrastructure is a challenge that needs tackling by network operators - both large and small. Read More
Technology leaders join forces to bring an open acceleration framework to data centresMellanox, ARM, Huawei, IBM, Qualcomm Technologies Inc., a subsidiary of Qualcomm Incorporated, and Xilinx, Inc. have joined forces to bring a high-performance open acceleration framework to data centres. Read More
Why going paperless can make you more money – and save some tooThe environment and saving costs when moving a business to a paperless office are the two most popular benefits, but there are many more benefits to doing so. Read More
Airtel chief: Disruptive technologies vital to Nigeria’s GDP growthLeading telecommunications services provider, Airtel Nigeria, has said disruptive technologies can contribute significantly to the nation’s Gross Domestic Product (GDP) if ICT start-ups are encouraged to create innovations that deliver value. Read More
Youths gain fom ICT Dynamix supportBotswana based citizen owned company ICT Dynamix is upskilling and employing youths in the ICT industry. Read More
Acer to invest in BotswanaAcer, the global hardware, software and services company, announced its investment and growth strategy for the Botswana market. Read More
Rack Centre appoints Udoaka Business Development DirectorRack Centre has announced the appointment of Mr Frederick Udoaka as its new Business Development Director. Read More
FEATURED STORYFirst-ever Africa Barclays Accelerator programme concludes
Ten fintech companies have concluded the first-ever Barclays Accelerator, powered by Techstars in Africa.
BEST READ NEWS
IN DEPTHEthical Hacking students can’t get a heck of a job
Botswana ethical hacking students report that they are failing to break into the local job market.