By Silvia Nyambura
Uganda Securities Exchange (USE) has launched the Automated Trading System (ATS) a highly modern information system that will enable it provide more accurate and real time information to all its service users.
The ATS is a web based platform which is expected to enhance liquidity and flexibility in the way deals are made and it can be accessed from the comfort of investors’ homes and offices. The USE also plans to make this service available through mobile phones in the coming weeks.
According to USE CEO Paul Bwiso, since the system began operating on 22nd July this year, there has been seamless trade.
Addressing a breakfast meeting at the Kampala Serena Hotel today Bwiso said, “Brokers are now trading from their offices. We no longer have the noise and the shouting for bids and offers. It is also very secure with enhanced security features. Since we rolled out this system we have traded Ushs 17 billion worth of turnover in 627 deals and about 109 million shares have exchanged hands. This means we are able to move shares faster and have different options for trading.”
The ATS is expected to create more confidence in the operations of capital markets and make it easier for Ugandans to invest in the securities exchange.
“It will enhance the capacity of our market to absorb larger issues and further enable private sector to access long term financing for investment. This will elevate the functioning of the market making it more formal. The outreach will also be enhanced bringing optimal growth to the private sector,” he added.
Charles Mbire the USE Chairman explained investment in the securities exchange allows companies to raise funds through initial public offers as well as bonus and rights issues. This provide cheap and efficient capital for investment and business expansion.
“Most companies do not survive beyond 5 years after the death of their founders. Local companies can live longer than their founders. It is also important to note the role of capital markets to the development of the economy. Countries can develop faster through their securities exchange. Government agencies would be able to raise money to invest in infrastructure and other projects rather than relying on donors if they were listed,” he said.
Making his remarks as guest of honor Uganda’s Prime Minister Dr. Ruhakana Rugunda said, “The USE is a key driver to empower ordinary Ugandans to create wealth. It also enables local businesses to raise long term capital. Investment in the securities exchange market allows organizations to attract foreign direct investments as well as achieve corporate governance. Capital markets are a vital engine for economic growth and the government is committed to developing policies to support them.”