- According to a statement issued yesterday by the committee of Southern African Development Community (Sadc) stock exchanges (CoSSE), good progress has been made on the proposed centralised trading of stock markets in the region.
- The statement was made during a 59th bi-annual meeting Sadc stock exchanges held under CoSSE secretariat.
- The progress made has been on several technical requisites to enable centralised trading of government bonds at the exchanges.
According to a statement issued yesterday by the committee of Southern African Development Community (Sadc) stock exchanges (CoSSE), good progress has been made on the proposed centralised trading of stock markets in the region. The statement was made during a 59th bi-annual meeting with SADC stock exchanges held under CoSSE secretariat. The progress made has been on several technical requisites to enable centralised trading of government bonds at the exchanges.
CoSSE is a grouping of 14 stock exchanges within the SADC region with different listing and investing requirements. The existing norms make an investment from outside difficult other than the country’s citizens. For instance, If a Malawian investor is interested in investing in Johannesburg Stock Exchange, he has to go through the Reserve Bank of Malawi and then find a local broker who should link with another broker in South Africa.
Speaking about the development, a representative of Malawi Stock Exchange (MSE) remarked that the local bourse was already reviewing trading requirements and enabling stock brokers with the necessary expertise. Given the low liquidity levels on the debt market, linking the markets would improve liquidity and widen the investment portfolio for local investors to invest abroad and for international investors to invest in the stock market. Harmonisation would widen stock markets such as Malawi Stock Exchange, which are small as compared to other stock exchanges
