•Trading will be on an e-platform (The AELP Trading Link) under the African Exchanges Linkage Project (AELP).
•It enables seamless cross-border securities trading among seven African stock exchanges, representing 2,000 companies.
Kenya is among seven markets in Africa targeted for cross-border securities trading.
This is on an e-platform (The AELP Trading Link) under the African Exchanges Linkage Project (AELP).
It enables seamless cross-border securities trading among seven African stock exchanges, representing 2,000 companies with roughly $1.5 trillion (Sh184.5 trillion) market capitalisation.
The AELP Link Trading Platform incorporates stock market integration, an order routing system, and market and order-book data sharing.
AELP is a joint initiative of the African Development Bank and the African Securities Exchanges Association (ASEA).
Through a grant from Korea-Africa Economic Cooperation Trust Fund (KOAFEC), the bank is funding ASEA’s phased rollout of the project.
“With AELP, we are entering a new era of African capital markets where all our members will gradually transact cross-border trades from one African securities exchange to another," ASEA president Edoh Kossi said.
Kossi said the project represents a great opportunity for investors and issuers across the continent.
The first phase of the AELP will connect seven stock exchanges across 14 African countries: Morocco, Egypt, Nigeria, Kenya, Mauritius, South Africa and the West Africa Economic and Monetary Union.
The union comprises Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo.
The AELP Trading Link went live on November 18, following a beta testing period.
The system is being deployed in partnership with DirectFN Ltd.
AELP also provides training programs targeting financial market practitioners on cross-border investment practices, and investment rules across the participating markets.
Capacity-building programs have benefitted financial market regulators, stockbrokers, security dealers, custodians, central bankers, and other stakeholders.
The African Development Bank and ASEA have also jointly supported the establishment of the African Stockbrokers and Securities Dealers Association, as a pioneering pan-African platform.
This is for collaboration between security dealers on capital markets integration and financial products innovation.
The African Development Bank’s manager for capital markets development, Ahmed Attout, said: "The AELP is a transformational project that aligns with the African Development Bank’s High 5 priorities, especially industrialise Africa” and Integrate Africa."
It is also in tandem with the African Continental Free Trade Agreement’s objective of establishing a liberalised market to aid the movement of capital, facilitate investments and deepen the continent's economic integration, Attout.