Ten African countries are expected to begin cross-trading in listed securities in October, an official said on Wednesday.
Geoffrey Odundo, CEO of the Nairobi Securities Exchange (NSE) told journalists in Nairobi, Kenya of capital, that the 10 African stock exchanges have joined the digital platform that enables the purchasing and sales of listed equities and debt instruments.
“At the moment, the stockbrokers in the different African countries are currently testing the system to ensure they can trade amongst themselves,” Odundo said during the launch of the NSE quarterly barometer which offers details on market performance for the period ended June 30 as well as insights on market outlook.
He said that some of the countries that will participate in the cross-trading include Egypt, Ghana, Botswana, Kenya, Nigeria and Morocco.
He revealed that the overall objective of cross-trading is to promote liquidity of stock exchanges in the continent as the region will be seen as a single market.
“Investors will now be able to buy and sell listed securities from across the continent using their local stockbrokers,” Odundo added.
According to Odundo, all settlements will happen in the local currencies in order to reduce costs associated with conversion of funds into foreign currency. Enditem