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MSE to Computerize Trading

Malawi Stock Exchange (MSE) has disclosed plans to computerize the trading process.

The plan will be done jointly with Reserve Bank of Malawi (RBM), and it will replace the manual system to improve efficiency.

According to Operations Manager for Malawi Stock Exchange, Esnat Chilije, the development will involve establishment of an Automated Trading System (ATS) at MSE and introduction of electronically held certificates at RBM Central Securities Depository (CSD).

“This new system will be very efficient as it will shorten settlement of shares. It will also be easy for the shareholders to use the new system. On the other hand, the use of paper certificates holds many risks as they can be lost or stolen but the electronically held certificates will deal away will such problems,” she said.

The electronic trading is expected to commence by end of May 2018 and only securities that have been transferred and registered in the CSD will be traded in the automated trading system.

Chilije said dematerialization process of the existing paper certificates which commenced on April 30 this year will run till September, adding that shareholders will be required to open investor accounts and migrate their securities from paper–based title to electronic ones in preparation for the trading of electronic based securities.

“Current shareholders are consequently required to contact a registered stock broker or custodian where they will complete a Stock Holding Declaration and Consent to Dematerialize form. Upon presentation of the physical certificates, a signed and stamped copy of the form will be provided to the holder,” she explained.