Electronic Trading to Take Off soon in Uganda
Uganda’s Capital Market Authority has expressed optimism that the Central Depositary System which is a computerised system of conducting trading on the stock exchange will be operational before the end of the year.
"Every body in the industry and those in the legislation are happy with the system and we expect trading using Central Depositary system to commence at the stock exchange before the end of 2008," The Chief Executive Officer of CMA, Mr Japheth Katto told Business Power on March 20 after news that that cabinet had approved the Bill that paves way for its debate in parliament. The system permits makes trading at the stock exchange more efficient as pricing and settlements are done online.
According to CMA, the CDS will increase efficiency at the Uganda Stock Exchange realising higher turnover as the market becomes more liquid. It will allow online trading, account registration, deposit of shares, withdrawal, transfer of shares clearing, settlements registration, handling of new and subsequent issues in secondary market relating to equity and debt. All these could be done almost seamlessly between units.
He said the CDS Bill had taken long at cabinet level and expressed optimism that the legislature will pass the law faster. If the bill is passed by parliament, Uganda Securities Exchange will be the third to use electronic trading system in East Africa after Nairobi and Dar es Salaam stock exchanges.