Nairobi,Kenya
Nairobi Securities Exchange (NSE) has launched the Broker Back Office (BBO) that will automate the back office, a move aimed at minimizing manual intervention in the stock market.
The back office is the section where individual account records are kept, cheques are processed, and security certificates are kept. All the activities involved here are not directly involved in selling or trading with customers.
Presided over by the Permanent Secretary in the Ministry of Information and Communications Dr Bitange Ndemo, BBO will support internet and mobile banking. Ndemo urged the implementers to take full advantage of the fibre optic cable as well as participate in Konza City developmen.
“By December, every county will be connected to the fibre optic cable. NSE should reap from this as well as participate in the Konza City investment,” he said, urging the executors to develop simple mobile apps for Kenyans who are not IT savvies.
The system automates the entire process of transacting in shares with minimal manual intervention and is interfaced with the Automated Trading System (ATS) and Central Depository System (CDS).
The BBO system will reduce the risk of trading in securities listed on the NSE, boost investor confidence and facilitate greater access by enabling internet trading. The Broker Back Office will improve the integrity of the Exchange trading systems and facilitate greater access to the securities market. With the automation, the senior management will be able to monitor and audit activities via suitable alerts and exception reports to detect fraud in the market.
“The automation is aimed at minimizing fraud in the stock market as well as ensuring that transparency is upheld,” said Mr Paul Muthaura, the Acting CEO Capital Markets Authority, during the launch at NSE Trading Floor in Nairobi.
BBO went live in phases and has successfully undergone the test phase to optimize system customization. With the full automation, trading participants in the 47 counties as well as those in Diaspora will have access to the information.This will make investors interested in the Kenyan market make informed decisions based on the date provided by NSE.
The BBO launch is a concerted effort of NSE, KASIB (Kenya Association of Stockbrokers and Investment Banks), CMA (Capital Markets Authority) and CDSC (Central Depository and Settlement Corporation).
The writer is a Communication and Journalism Student, Moi University
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