No more paper trading at NSE

There would be no more paper trail at the Nairobi Securities Exchange given the new system slated for launch later today.

The new system known as Broker Back Office (BBO) will see an end to paper trading at the securities exchange. Brokers will now be able to apply electronic ways to check and trade on various stocks on offer.

The system has been in development for a year now and it is ready for its market debut. The system will also ensure that the trading at the NSE will be transparent and can be easily traceable.

Trading will now be exclusively electronic as the systems at the NSE will be connected to the Automated Trading System and Central Depository System.

Analysts believe that this move will enable to integrate other securities exchange from neighbouring countries such as Dar-es-salaam, Rwanda Stock Exchange, Burundi and Kampala stock exchanges. This would be possible through introducing electronic trading at the exchanges.

This would mean that interested investors from any country would be able to trade without physically visiting any of the countries with the integration.

The Nairobi Securities Exchange has been in the process of computerizing and automating its businesses over the recent years.

In 2006, the company started live trading on automated systems. The ATS was sourced from a company in Sri Lanka. They also were the suppliers of Central Depository System (CDS). This had to be done to make the business of transacting stocks seamless.

In 2007, the NSE upgraded its website to offer more information on an accurate and factual basis to the public. This saw traders getting information quickly without having to visit the NSE premises.

The same year the NSE implemented a Wide Area Network (WAN) to eliminate the need for brokers to send dealers to the trading floor to conduct trading.

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