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Trading on Malawi Stock Exchange to be automated

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The Malawi Stock Exchange (MSE) is expected to phase out floor trading in May this year and transition all operations to an automated trading system (ATS).
The online platform will eliminate manual trading to enhance efficiency of the market.
Malawi Stock Exchange Chief Executive Officer, John Kamanga, said the project is expected to roll out early February.
Kamanga said a contract has been signed with the supplier.
“We have just signed a contract with a technology supplier from Pakistan and we should be rolling out the project by first week of February when the supplier will be in the country,” he said.
Kamanga further said the automated system will go live in April or May this year.
Kamanga said the advantage of the ATS is that it will remove human intervention.
“This will provide confidence to the market and efficiency. With that aspect, we are going to have a good turn around in terms of the settlement period; hence it is going to increase liquidity on the market and, once that happens, it is going to increase confidence levels in the market.
“Once the confidence is there, this will, attract investors to come to the stock exchange and list either through bonds or equity listing,” Kamanga said.
He, however, said the human intervention does not mean job losses but that brokers will be entering their bids while in their offices and the stock market will just be receiving the information through a computer system.
“The computer system will now be doing the matching without someone shouting the prices on the floor and confirming that a trade has happened at a particular price.
“The automatic trading system will still need humans to operate it, even though the matching is going to be electronic,” he said.

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