BSE unyielding on growth plans

Despite the current economic climate with short to medium term risks, Botswana Stock Exchange (BSE) remains optimistic of the year ahead. “We project an enabling environment that would be very supportive of our 2022 – 2026 strategy,” said BSE Chief Executive Officer, Thapelo Tsheole in an outlook forecast for 2023. BSE also intends to grow its brand beyond borders, attracting more investors on completion of its ongoing demutualization and self-listing process earmarked for this year. “This milestone is expected to enhance foreign investor and issuer trust on the organisation, and will complement our internationalisation strategy where we intend to aggressively move into the global community to attract issuers and investors,” said Tsheole.The BSE growth plan is supported by a robust technology leap that has seen the company launching a new Central Securities Depository (CSD) system, and a new Automated Trading System (ATS). “Following the launch of the new CSD system and ATS in September 2022, the BSE anticipates to materially reap the benefits of the investment in technological infrastructure including the virtual stock market simulator scheduled to launch in 2023.“These will transform the landscape in major ways, stimulate investor activity and allow for the introduction of new services and products,” said Tsheole, citing that retail investors will begin to trade bonds electronically on the BSE through the ATS. “In addition, we anticipate an increase in participation across various products, the reach of the market and overall education levels about the stock market,” he added. BSE’s advancements in technological infrastructure aim to improve the resilience of the market, network security, operational efficiencies and align with international best practice in order to make the BSE competitive in the global securities market.According to Tsheole, the new CSD system has commissioned the settlement of market transactions on the BSE at Bank of Botswana (BoB) through the Botswana Interbank Settlement System (BISS) which, just like the CSD system, is linked to the SWIFT network. “And this is known as Settlement in Central Bank, an inviable milestone in financial stability and elevating our capital market to international standards.” In addition, the CSD system comprises of new functionalities and capabilities that expand its services and products such as the centralised custody for all securities in the market including government securities, Electronic Annual General Meetings (E-AGMs), among others. “In due course, the system will provide customers remote access to their CSD accounts and statements.In due course, these functionalities will contribute meaningfully to the CSDB’s commercial viability and profitability.” Meanwhile, the new ATS is an upgrade of the ATS that was implemented in 2012. The salient features of the new ATS include an improved Request for Quotation (RFQ) mechanism which is popular for bond trading, a bond calculator, availability of micro auctions which can be used for market-making, as well as improved information dissemination capabilities.

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BSE unyielding on growth plans