This archive report was first published on 15 October 2019.
The Nairobi Securities Exchange (NSE) has upgraded its Automated Trading System, marking a significant milestone in the bourse's history.
On October 14th, 2019, the new system went live, replacing the outdated platform that had been in use since 2006.
The upgraded system allows for seamless linkage between the back-office operations of stockbrokers and the registry and automated trading system run by the Central Depository and Settlement Corporation (CDSC) and the Nairobi Stock Exchange (NSE) respectively.
This new system is expected to minimize stockbrokers' behind-the-scenes malpractices, including unauthorized selling of clients' shares.
According to Mr. Odundo, the bourse's officials, the upgrade will enable the NSE to trade new products and reduce dependency on the coupled environment with the depository.
As part of its plans, the NSE will focus on promoting the uptake of existing and new products, and attracting new listings to end the initial public offerings drought in the market.
Introduction of Automated trading was first introduced at the NSE in 2006, aimed at making it easy to audit trail in the trading process and sealing loopholes used by rogue market players.
With the new platform, purchases or selling of shares, including payments and receipts of cash on similar shares by stockbrokers and investment bankers are automatically tracked by regulators.
Related: Traders to Have Direct Access to NSE Derivatives Market
