The Nairobi Securities Exchange (NSE) is expected to launch a Broker Back Office (BBO) system that electronically links all brokers to the trading systems and to the central depository, thereby doing away with the use of paper trading shares.
BBO implementation began last year in phases enabling the Capital Markets Authority to connect to the brokers’ system and monitor trading. It is expected to cost Ksh.100 million while reducing the risk of trading in securities listed on the NSE.
A robust regional network that includes Dar es Salaam Stock Exchange, Rwanda Stock Exchange, Uganda Securities Exchange and Burundi, is likely to emerge as they have adopted Kenya’s model for all brokers.
It is expected that brokers in the region running on the same system will make it easier for the development of a regional trading network. Currently, if an investor wants to trade shares at the DSE for instance from Kenya, they would either be there in person or engage brokers working together.